Glossary · People and paperwork
In short
The legal obligation of an individual for business debts and actions, meaning their personal assets can be seized to satisfy those obligations. This is a primary concern for business owners.
As an SBA 7(a) borrower, you'll sign a Personal Guarantee, making you personally liable for the loan. Beyond the loan, your choice of entity (LLC, Corporation) can limit other business liabilities to the business's assets. Understand where your personal assets are exposed and ensure the business structure aligns with your risk tolerance.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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.
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