{"ok":true,"canonical_url":"https://dealroom.so/glossary/default","api_url":"https://dealroom.so/api/public/glossary/default","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":"default","term":"Default","group":"The loan itself","definition":"Default occurs when a borrower fails to meet the terms of their loan agreement, most commonly by missing payments. This is a serious event that triggers the lender's right to take action, including calling your Personal Guarantee.","what_it_means":"If your business loan goes into Default, the lender will first try to work with you to cure the issue. However, if uncorrected, they will initiate collection actions, potentially including the Call of the Guaranty and foreclosure on Collateral. A Default can severely impact your credit and future borrowing capacity.","url":"https://dealroom.so/glossary/default","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":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"call-of-the-guaranty","term":"Call of the guaranty","url":"https://dealroom.so/glossary/call-of-the-guaranty"}],"related_questions":[{"question":"What happens if I default on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-i-default-on-an-sba-7-a-loan"},{"question":"How does a lender request an SBA guaranty purchase after loan default?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-sba-guaranty-purchase-after-loan-default"},{"question":"What constitutes 'prudent liquidation' for a 7(a) loan to protect the SBA guaranty during default?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-liquidation-for-a-7-a-loan-to-protect-the-sba-guaranty-during-def"},{"question":"What are a lender's primary responsibilities once a 7(a) loan enters liquidation after default?","url":"https://dealroom.so/for-lenders/questions/what-are-a-lender-s-primary-responsibilities-once-a-7-a-loan-enters-liquidation-after-defa"},{"question":"Will a past federal student loan default, now rehabilitated, affect my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-a-past-federal-student-loan-default-now-rehabilitated-affect-my-sba-7-a-loan-approval"},{"question":"What are the specific consequences if I default on my personal guaranty for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-specific-consequences-if-i-default-on-my-personal-guaranty-for-an-sba-loan"}]},"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 — Default","url":"https://dealroom.so/glossary/default","source_type":"DealRoom Data"}}