Glossary · The loan itself
Guaranty Percentage
In short
This is the portion of a defaulted SBA loan that the SBA guarantees to pay the lender. It's usually 75-90% for a 7(a) loan, limiting the lender's risk.
What it means in a deal
The guaranty percentage impacts the lender's willingness to make the loan and their level of diligence. While it reduces the lender's risk, it doesn't reduce your obligation to repay the entire loan. You are always 100% responsible.
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 Percentage
- What is the maximum percentage of an SBA 7(a) loan guaranty?
- What is the maximum ownership percentage for an individual to avoid personal guaranty?
- Do all owners of an acquiring business, regardless of ownership percentage, need to provide a personal guaranty?
- Is a personal guaranty required for all owners of an acquiring business, regardless of their ownership percentage?
- What is the minimum ownership percentage that triggers a personal guaranty requirement for an SBA 7(a) loan?
- What is the upfront guaranty fee percentage for a 7(a) loan over $1,000,000 in FY2026?
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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