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Glossary · Reading the business

Personal debt

In short

This is money owed by an individual, not the business, such as mortgages, car loans, or credit card balances. It impacts your personal financial statement and global cash flow.

What it means in a deal

Lenders review your personal debt as part of your overall creditworthiness and repayment capacity for the SBA loan. High personal debt can affect your ability to qualify and may limit your equity injection options, so manage it carefully.

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 Personal debt

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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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