Glossary · People and paperwork
In short
This is a promise from you, the buyer, to repay the entire SBA loan if the business cannot. It's a non-negotiable requirement for all owners with 20% or more equity.
For an SBA 7(a) loan, every owner holding 20% or more of the business must sign an unconditional personal guaranty. This means your personal assets are on the hook if the business defaults. There are no conditions or limitations on this guarantee, making it a serious commitment you must understand fully.
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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