SBA loan basics
Short answer
Yes, generally, all owners with 20% or more equity in the business are required to personally guarantee an SBA 7(a) loan, and often non-owner spouses may be required as well.
The SBA requires a personal guarantee from all individuals owning 20% or more of the applicant business. This ensures that the principals have a vested personal interest in the success of the business and its ability to repay the loan, adding another layer of security for the lender.
If you own 100% of your business, you will definitely need to sign a personal guarantee. If you co-own a business 50/50 with a partner, both you and your partner will be required to provide personal guarantees.
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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