Glossary · People and paperwork
Borrower
In short
The individual or entity legally obligated to repay the loan. In an SBA acquisition, this is typically the acquiring business entity.
What it means in a deal
As the buyer, your new business entity will be the primary borrower on the SBA 7(a) loan. You, as the owner, will also provide a 'personal guarantee.' Understand the distinction between the business's liability as borrower and your personal liability as guarantor.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Borrower
- How are SBA 7(a) loan interest rates determined for borrowers?
- What documentation is needed to verify a borrower's equity injection when it comes from an existing business owned by the borrower?
- What does 'SBA guarantee' actually mean for me, the borrower?
- What fees do borrowers pay directly to the SBA for a 7(a) loan?
- What does the 'SBA guarantee' actually mean for me, the borrower?
- How does the SBA guarantee truly benefit me as the borrower?
Defined by CapBench 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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