Glossary · People and paperwork
In short
A legal structure where an owner's personal assets are not protected from the business's debts and obligations. Creditors can pursue the owner's personal wealth.
This is a key risk factor for buyers, common in sole proprietorships and general partnerships. For an SBA 7(a) loan, you'll provide a Personal Guarantee regardless, but a business structure like an LLC or Corporation still offers protection against other business liabilities beyond the loan. Always consider structuring your acquisition to limit liability where possible.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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