{"ok":true,"canonical_url":"https://dealroom.so/glossary/acceleration-clause","api_url":"https://dealroom.so/api/public/glossary/acceleration-clause","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"acceleration-clause","term":"Acceleration clause","group":"People and paperwork","definition":"This clause in a loan agreement allows the lender to demand immediate repayment of the entire outstanding loan balance if certain conditions (defaults) are met. It's a critical risk to understand.","what_it_means":"An acceleration clause is standard in nearly all loan documents, including SBA loans. It means if you default on payments, violate a covenant, or fail to meet other loan terms, the lender can call the entire loan due. Understand every condition that could trigger acceleration, as it can lead to immediate financial distress and business loss.","url":"https://dealroom.so/glossary/acceleration-clause","official_sources":[],"related":[{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[{"question":"Can a seller note on full standby have an acceleration clause if the business defaults on the SBA loan?","url":"https://dealroom.so/for-lenders/questions/can-a-seller-note-on-full-standby-have-an-acceleration-clause-if-the-business-defaults-on-"},{"question":"What if a proposed franchise agreement includes a clause restricting the borrower's operational control or management?","url":"https://dealroom.so/for-lenders/questions/what-if-a-proposed-franchise-agreement-includes-a-clause-restricting-the-borrower-s-operat"},{"question":"What specific franchise agreement clauses are generally unacceptable to the SBA and could prevent financing?","url":"https://dealroom.so/sba-7a/questions/what-specific-franchise-agreement-clauses-are-generally-unacceptable-to-the-sba-and-could-"},{"question":"How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-review-franchise-agreements-for-compliance-if-there-are-unusual-clauses-r"},{"question":"What specific types of clauses in a franchise agreement would constitute \"undue control\" by the franchisor, rendering it ineligible for 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/what-specific-types-of-clauses-in-a-franchise-agreement-would-constitute-undue-control-by-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Acceleration clause","url":"https://dealroom.so/glossary/acceleration-clause","source_type":"DealRoom Data"}}