{"ok":true,"canonical_url":"https://dealroom.so/glossary/defaulted-loan","api_url":"https://dealroom.so/api/public/glossary/defaulted-loan","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":"defaulted-loan","term":"Defaulted loan","group":"The loan itself","definition":"A loan is defaulted when the borrower fails to meet the terms of the loan agreement, most commonly by missing payments. This triggers serious consequences for both the borrower and the lender.","what_it_means":"If your SBA loan defaults, the lender can pursue collection actions, including enforcing personal guarantees and liquidating collateral. A default can severely damage your credit and lead to personal judgments. Understand all the conditions in your loan agreement to avoid default and protect your investment and personal assets.","url":"https://dealroom.so/glossary/defaulted-loan","official_sources":[],"related":[{"slug":"acceleration-rights","term":"Acceleration rights","url":"https://dealroom.so/glossary/acceleration-rights"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"Can an owner who previously defaulted on a *personal* loan get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-an-owner-who-previously-defaulted-on-a-personal-loan-get-an-sba-7-a-loan"},{"question":"Can I get an SBA 7(a) loan if I have defaulted on a previous federal debt?","url":"https://dealroom.so/sba-loans/basics/can-i-get-an-sba-7-a-loan-if-i-have-defaulted-on-a-previous-federal-debt"},{"question":"What constitutes \"commercially reasonable\" efforts by a lender in liquidating collateral for a defaulted 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-commercially-reasonable-efforts-by-a-lender-in-liquidating-collateral-for"},{"question":"What is the role of a \"workout plan\" in the liquidation of a defaulted 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-role-of-a-workout-plan-in-the-liquidation-of-a-defaulted-7-a-loan"},{"question":"What is the key impact of a 'repair' on an SBA guaranty purchase request for a defaulted loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-key-impact-of-a-repair-on-an-sba-guaranty-purchase-request-for-a-defaulted-loa"},{"question":"What is the maximum timeframe for a lender to submit a liquidation plan for a defaulted 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-timeframe-for-a-lender-to-submit-a-liquidation-plan-for-a-defaulted-7-"}]},"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 — Defaulted loan","url":"https://dealroom.so/glossary/defaulted-loan","source_type":"DealRoom Data"}}