Glossary · Doing the deal
In short
Your signed promise to repay personally if the business can't. Required from every owner of 20% or more. No exceptions.
The personal guarantee is the SBA's non-negotiable condition for every owner holding 20% or more: you pledge your personal assets — home equity, savings, investments — behind the loan. If the business can't pay, the lender collects from the business first, then from you personally. Spouses may be required to co-sign if they hold substantial personal assets. There is no carve-out for the personal guarantee on SBA 7(a) loans, full stop.
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 2026-06-14. 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 2026-06-14 · 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.
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