Glossary · People and paperwork
In short
An individual who guarantees an SBA loan but does not own 20% or more of the business. This person is still personally liable for the loan.
Anyone owning 20% or more of the business must typically guarantee the SBA loan. A non-owner guarantor is usually someone like a key employee or a spouse who doesn't meet the 20% threshold but is still required to guarantee due to their role or shared assets. Understand who needs to sign a personal guarantee.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day