Glossary
Personal guarantee
Everyone owning 20% or more signs personally. If the business fails, SBA can pursue you individually for whatever remains after collateral is sold.
Why it matters to you
This is the part people sign without reading. Your house isn't automatically collateral, but if you have meaningful equity in it the lender will usually take a lien. Understand precisely what's pledged before you sign, and if you're married, understand what your spouse is signing too.