Glossary · People and paperwork
Individually liable
In short
A legal status where an individual is personally responsible for a debt or obligation, regardless of the business's legal structure. This means your personal assets are at risk.
What it means in a deal
When you sign an unconditional personal guarantee for an SBA loan, you become individually liable for the full amount. This obligation persists even if the business fails, so understand the potential impact on your personal finances.
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.
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Common questions about Individually liable
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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