Glossary · Your money in the deal
In short
A legal promise by you, the borrower, to personally repay the entire loan amount if the business defaults. This puts your personal assets at risk.
All owners of 20% or more in the acquiring entity are required to provide an unlimited personal guarantee for an SBA 7(a) loan. This means your personal assets, beyond your initial equity injection, are on the line. Understand this full recourse obligation before committing to the deal.
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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