Glossary · People and paperwork
Co-Borrowers
In short
Individuals who jointly apply for and are equally responsible for repaying the loan. For a small business acquisition, this usually means all active owners.
What it means in a deal
If you're buying a business with partners, you'll likely all be co-borrowers, sharing equal responsibility for the SBA loan. This means your creditworthiness and financial health are all under scrutiny. Ensure all co-borrowers understand their full liability and complete Form 1919 accurately.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Co-Borrowers
- How are SBA 7(a) loan interest rates determined for borrowers?
- What fees do borrowers pay directly to the SBA for a 7(a) loan?
- Is the SBA like a co-signer for my business loan?
- What happens if a major co-owner or guarantor has a recent bankruptcy on their personal credit?
- What impact does a co-signer on my personal guaranty have on the SBA 7(a) loan approval?
- Can an SBA 7(a) loan be used to purchase a business that is structured as a co-op?
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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