Glossary · People and paperwork
General partner
In short
An owner in a partnership with full personal liability for the business's debts and obligations, and active management authority. This structure exposes personal assets to business risk.
What it means in a deal
While less common in 7(a) acquisitions than LLCs or corporations, if you're buying into a general partnership, understand the liability implications. As a general partner, you'd be personally responsible for all business debts, which is a significant risk beyond your equity injection. Most buyers prefer structures that limit personal liability.
Related terms
Common questions about General partner
- How does the SBA differentiate between a general partner and a limited partner for personal guaranty requirements?
- Can an SBA 7(a) loan be used for general business expansion?
- What are the general collateral requirements for an SBA 7(a) loan?
- What is the SBA's general requirement for lien position on business collateral?
- What are the general credit score expectations for an SBA 7(a) loan applicant?
- For general business protection, should the business or individual owners own the life insurance policy?
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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