SBA loan basics
Short answer
Yes, generally all owners with 20% or more equity in the business are required to provide a full and unconditional personal guarantee for an SBA 7(a) loan.
The SBA requires personal guarantees from significant owners to ensure they are personally committed to the success and repayment of the business loan. This reinforces accountability and provides an additional layer of security for the lender.
If a business has two owners, one with 60% and another with 40% ownership, both individuals must sign a personal guarantee for the full loan amount. If there were a third owner with 10% ownership, they would not typically be required to guarantee.
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
SBA Form 1919 - Borrower Information Form
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.
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