Glossary · People and paperwork
In short
If your spouse owns 20% or more of the business or is a Key Principal, they must personally guarantee the SBA loan. This ensures they are equally liable for the debt, even if they aren't directly involved in daily operations.
The SBA requires personal guaranties from all owners with 20% or more equity, and any Key Principals, which can include a spouse. Your lender will require your spouse to sign a personal guaranty, making their personal assets available to repay the loan if the business defaults. Understand this joint liability before closing.
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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