{"ok":true,"canonical_url":"https://dealroom.so/glossary/conditional-guaranty","api_url":"https://dealroom.so/api/public/glossary/conditional-guaranty","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":"conditional-guaranty","term":"Conditional guaranty","group":"The loan itself","definition":"An SBA guaranty where the lender's ability to collect from the SBA is subject to specific conditions being met. The SBA might reduce its payout if the lender did not follow all procedures.","what_it_means":"The SBA's guaranty to the lender is always conditional. It means if the loan defaults and the lender made errors in underwriting, closing, or servicing the loan (e.g., failing to perfect a lien), the SBA can reduce or deny their claim. This protects the SBA from lender negligence, but doesn't directly impact your obligation to repay.","url":"https://dealroom.so/glossary/conditional-guaranty","official_sources":[{"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"},{"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"}],"related":[{"slug":"full-guaranty","term":"Full guaranty","url":"https://dealroom.so/glossary/full-guaranty"},{"slug":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"servicing-deficiency","term":"Servicing deficiency","url":"https://dealroom.so/glossary/servicing-deficiency"},{"slug":"guaranty-purchase-request","term":"Guaranty purchase request","url":"https://dealroom.so/glossary/guaranty-purchase-request"}],"related_questions":[{"question":"Can I use a conditional grant from a local economic development agency as equity?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-conditional-grant-from-a-local-economic-development-agency-as-equity"},{"question":"What is the typical timeframe from submitting a complete application to receiving a conditional SBA 7(a) approval?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-timeframe-from-submitting-a-complete-application-to-receiving-a-condit"},{"question":"How long does it typically take for an SBA 7(a) loan application to go from conditional approval to full authorization?","url":"https://dealroom.so/sba-7a/questions/how-long-does-it-typically-take-for-an-sba-7-a-loan-application-to-go-from-conditional-app"},{"question":"What impact does a lender's failure to obtain a required personal guaranty have on a guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-impact-does-a-lender-s-failure-to-obtain-a-required-personal-guaranty-have-on-a-guara"},{"question":"What is the impact on the SBA guaranty if a lender failed to obtain a required personal guaranty from a principal?","url":"https://dealroom.so/for-lenders/questions/what-is-the-impact-on-the-sba-guaranty-if-a-lender-failed-to-obtain-a-required-personal-gu"},{"question":"What impact does a lender's failure to obtain a required personal guaranty from a principal have on a 7(a) guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-impact-does-a-lender-s-failure-to-obtain-a-required-personal-guaranty-from-a-principa"}]},"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 — Conditional guaranty","url":"https://dealroom.so/glossary/conditional-guaranty","source_type":"DealRoom Data"}}