Glossary · The loan itself
Recourse
In short
Recourse refers to the lender's right to pursue borrowers for repayment if they default on a loan, even beyond the collateral. It defines who is ultimately responsible for the debt.
What it means in a deal
SBA 7(a) loans are full-recourse loans, meaning the lender can pursue all available assets, both business and personal, from any guarantor if the business defaults. Your personal guarantee makes you fully liable for the 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 Recourse
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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