Glossary · People and paperwork
In short
This refers to the lender's right to pursue your personal assets to recover an unpaid loan amount, typically enabled by a personal guaranty. It means you are personally responsible for the debt, not just the business.
When you provide a personal guaranty, you grant the lender personal recourse. If the business defaults and the collateral isn't enough, the lender can come after your personal assets, like your home or savings. This is why understanding your personal liability is critical before signing.
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.
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