SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/founder-sba-personal-guarantee

Which owners must provide an unlimited personal guaranty for covered SBA loans?

Individuals owning 20 percent or more must provide it.

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  1. Individuals owning 20 percent or more ✔
  2. Only employees with no ownership
  3. Every customer

Why: For 7(a) and 504 programs, SBA's guarantee form says individuals with at least 20 percent ownership must provide an unlimited personal guaranty. That can expose personal assets if the business defaults.

Huh, didn't know that: A government guaranty to the lender does not erase the borrower's duty to repay.

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Why did the guaranty read every line? It was taking things personally.
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References

Answer: Individuals owning 20 percent or more. For 7(a) and 504 programs, SBA's guarantee form says individuals with at least 20 percent ownership must provide an unlimited personal guaranty. That can expose personal assets if the business defaults.

  1. SBA Form 148, Unconditional Guarantee legacy.sba.gov/document/sba-form-148-unconditional-guarantee
    Individuals who own 20% or more of a small business applicant must provide an unlimited personal guaranty.
    Checked 2026-10-11.

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