{"ok":true,"canonical_url":"https://dealroom.so/glossary/charge-off","api_url":"https://dealroom.so/api/public/glossary/charge-off","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":"charge-off","term":"Charge-off","group":"The loan itself","definition":"When a lender determines a loan is unlikely to be repaid, they write it off as a loss on their books. This often precedes collection efforts or a guaranty purchase.","what_it_means":"A charge-off typically occurs after a loan defaults and all reasonable collection efforts fail. For an SBA 7(a) loan, this is a serious event that can lead to the lender calling on the SBA guaranty and pursuing personal guarantees. Avoid this at all costs.","url":"https://dealroom.so/glossary/charge-off","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-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"liquidation-plan","term":"Liquidation Plan","url":"https://dealroom.so/glossary/liquidation-plan"}],"related_questions":[{"question":"What if my personal credit report shows a recent charge-off from a past medical bill?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-report-shows-a-recent-charge-off-from-a-past-medical-bill"},{"question":"Under what conditions can a lender charge off a 7(a) loan without prior SBA approval during the liquidation process?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-can-a-lender-charge-off-a-7-a-loan-without-prior-sba-approval-during"},{"question":"Will a past charge-off on a personal credit card from several years ago prevent my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-a-past-charge-off-on-a-personal-credit-card-from-several-years-ago-prevent-my-sba-7-a"},{"question":"Will a past charge-off on a personal credit card from five years ago automatically disqualify me from an SBA loan?","url":"https://dealroom.so/sba-7a/questions/will-a-past-charge-off-on-a-personal-credit-card-from-five-years-ago-automatically-disqual"},{"question":"Does the SBA charge any fees to me directly for applying?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-charge-any-fees-to-me-directly-for-applying"},{"question":"Does the SBA tell lenders exactly what interest rate they must charge?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-tell-lenders-exactly-what-interest-rate-they-must-charge"}]},"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 — Charge-off","url":"https://dealroom.so/glossary/charge-off","source_type":"DealRoom Data"}}