SBA loan basics
Short answer
Yes, generally, all owners with a 20% or more ownership stake in the business must provide a full personal guarantee. Lenders may also require guarantees from key management or those with significant control.
The SBA requires that all individuals owning 20% or more of the business to provide an unconditional personal guarantee. This ensures that principals have a personal stake in the success of the business and are liable for repayment if the business defaults.
In a business with three owners holding 50%, 30%, and 20% stakes, all three owners would be required to sign a personal guarantee for the SBA 7(a) loan.
Insider move
Lenders verify ownership percentages and ensure all required guarantors sign the necessary documentation. They also assess the personal financial strength of each guarantor.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on personal guaranty
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