Glossary · People and paperwork
Unconditional
In short
This term signifies that an agreement or obligation has no strings attached or prerequisites. In SBA loans, it's crucial for things like personal guaranties and gifted equity, meaning they can't be revoked or dependent on future events.
What it means in a deal
For a personal guaranty to be valid, it must be unconditional, meaning you can't claim it's only enforceable if certain conditions are met. Similarly, gifted equity must be an unconditional gift. The SBA wants clear, direct commitments without loopholes.
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
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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