{"ok":true,"canonical_url":"https://dealroom.so/glossary/breach-of-the-loan-agreement","api_url":"https://dealroom.so/api/public/glossary/breach-of-the-loan-agreement","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"breach-of-the-loan-agreement","term":"Breach of the Loan Agreement","group":"People and paperwork","definition":"This occurs when you, as the borrower, fail to meet a condition or obligation outlined in your SBA loan agreement. It can lead to penalties, acceleration of the loan, or even default.","what_it_means":"Your loan agreement will detail specific covenants and conditions you must uphold, like maintaining certain financial ratios or providing annual tax returns. A breach, even a minor one, can trigger actions from your lender, so understand all terms before signing. Consistent compliance is key to avoiding issues.","url":"https://dealroom.so/glossary/breach-of-the-loan-agreement","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"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":"What specific elements of a franchise agreement does the SBA review to determine eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-elements-of-a-franchise-agreement-does-the-sba-review-to-determine-eligibili"},{"question":"Can the seller's post-closing consulting agreement influence the standby status of their seller note?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-s-post-closing-consulting-agreement-influence-the-standby-status-of-their-s"},{"question":"How does the SBA view a 'holdback' amount from the seller as part of the acquisition agreement?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-view-a-holdback-amount-from-the-seller-as-part-of-the-acquisition-agreeme"},{"question":"Can I include the cost of a non-compete agreement with the seller in my SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-i-include-the-cost-of-a-non-compete-agreement-with-the-seller-in-my-sba-7-a-loan"},{"question":"How does a lender verify the 'SBA-compliant' status of a franchise agreement not on the directory?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-sba-compliant-status-of-a-franchise-agreement-not-on-the-dire"},{"question":"Can a seller's post-closing consulting agreement influence the standby status of their seller note?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-s-post-closing-consulting-agreement-influence-the-standby-status-of-their-sel"}]},"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 — Breach of the Loan Agreement","url":"https://dealroom.so/glossary/breach-of-the-loan-agreement","source_type":"DealRoom Data"}}