# Who has to personally guarantee an SBA loan?

**Short answer:** Every individual who owns 20% or more of the applicant, directly or indirectly, must give an unlimited full guaranty. If no one does, at least one owner must provide a full unconditional guaranty. Source: SOP 50 10 8.1, Sec. A, Ch. 5, Para. A; 13 CFR § 120.160(a).

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Last checked: 2026-11-09

Every individual who owns 20% or more of the business, directly or indirectly, must give an unlimited full guaranty. The rule is in SOP 50 10 8.1, Sec. A, Ch. 5, Para. A.1 (p. 93), and 13 CFR § 120.160(a). It applies to 7(a) and 504 loans.

## The minimum

Each loan must be guaranteed by at least one individual or entity. If no single owner reaches 20% or more, at least one owner must provide a full unconditional guaranty.

## Who else can be covered

- **Entities.** Any entity with direct or indirect ownership of 20% or more must also give an unlimited full guaranty (Para. A.3).
- **Spouses.** Combined ownership with a spouse and minor children can pull in a smaller owner (Para. A.2).
- **Others the lender picks.** SBA or a delegated lender may require guaranties from other people or entities when needed for credit or other reasons (Para. A.1.c).

## Forms

The guaranty uses SBA Form 148. On 7(a) loans, the lender may use its own equivalent form instead (Para. A.1.a).

## Financial statements

The lender must obtain a personal financial statement from each individual guaranteeing the loan, dated within 90 days of loan approval. Supplemental Guarantors are excepted (Para. A.1.e).

## Who must qualify

SBA-required guarantors must meet the citizenship and residency requirements in Sec. A, Ch. 1, Para. F.

## One program difference

The Export Working Capital Program has its own rule. Guaranties of owners of 20% or more are generally required but may be waived by the Director, International Trade Finance (App. 19, Para. B.7).

## Sources

- [SOP 50 10 8.1, Sec. A, Ch. 5, Para. A (p. 93)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.160(a)](https://www.ecfr.gov/current/title-13/section-120.160)
- [SOP 50 10 8.1, App. 19, Para. B.7 (Para. B begins p. 408)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA Form 148, Unconditional Guarantee](https://legacy.sba.gov/document/sba-form-148-unconditional-guarantee)