Glossary · People and paperwork
In short
An Unlimited Guaranty means the guarantor is personally liable for the entire loan amount, not just a portion. For buyers, this is the standard for anyone with significant ownership, making your personal assets fair game if the business defaults.
If you own 20% or more of the acquiring entity, the SBA requires you to sign an Unlimited Guaranty. This means your personal assets are on the hook without limit until the SBA 7(a) loan is fully repaid. Understand this commitment and ensure your personal financial statement reflects your true capacity.
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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