Glossary · People and paperwork
In short
Being personally liable means you are individually responsible for repaying a business loan if the business cannot. This is a standard requirement for all 20%+ owners of an SBA 7(a) loan.
The SBA requires all owners with 20% or more equity in the borrowing entity to provide an unlimited personal guarantee. This means your personal assets are on the hook if the business defaults. Understand the implications before signing, as it binds you directly to the loan repayment.
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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