Glossary · The loan itself
Guaranty obligation
In short
The personal responsibility you take on to repay an SBA loan if the business cannot. This is a core requirement for all owners with 20% or more equity.
What it means in a deal
Your personal guarantee is a guaranty obligation. If the business fails to make payments, the lender can pursue your personal assets. Understand the full extent of this obligation; it's a significant risk you undertake with an SBA loan.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Guaranty obligation
- What happens to my personal guaranty obligation if I later sell the business?
- If I sell the business, does the new owner inherit the prepayment penalty obligation for the SBA loan?
- What impact does a lender's failure to obtain a required personal guaranty have on a guaranty purchase request?
- What is the impact on the SBA guaranty if a lender failed to obtain a required personal guaranty from a principal?
- What impact does a lender's failure to obtain a required personal guaranty from a principal have on a 7(a) guaranty purchase request?
- What does 'SBA guaranty' mean for my business loan application?
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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