Glossary · People and paperwork
In short
This is a legal procedure where a portion of your wages is withheld by your employer and sent directly to a creditor to satisfy a debt. It's a severe consequence of defaulting on a personal guarantee.
If you personally guarantee an SBA loan and default, and the lender obtains a personal judgment against you, wage garnishment can be used to collect the debt. This highlights the serious implications of a personal guarantee and the need for robust financial planning.
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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