{"ok":true,"canonical_url":"https://dealroom.so/glossary/deficiency-judgment","api_url":"https://dealroom.so/api/public/glossary/deficiency-judgment","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":"deficiency-judgment","term":"Deficiency judgment","group":"The loan itself","definition":"This is a court order requiring a borrower or guarantor to pay the remaining debt after collateral has been sold and didn't cover the full loan amount. As a buyer, you care because it highlights the personal risk associated with your SBA loan.","what_it_means":"If your business defaults on an SBA 7(a) loan and the lender liquidates all available collateral, but the proceeds don't cover the outstanding debt, the lender can pursue a deficiency judgment against you and any other guarantors. This judgment allows the lender to collect the remaining balance from your personal assets, underscoring the importance of your personal guarantee.","url":"https://dealroom.so/glossary/deficiency-judgment","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"}],"related":[{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"liquidation-plan","term":"Liquidation Plan","url":"https://dealroom.so/glossary/liquidation-plan"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"Does having a recent civil judgment against me affect my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/does-having-a-recent-civil-judgment-against-me-affect-my-sba-7-a-loan-eligibility"},{"question":"What if my personal credit report shows a judgment that has been satisfied or paid off?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-report-shows-a-judgment-that-has-been-satisfied-or-paid-off"},{"question":"Will a past tax lien or judgment on my credit report prevent SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-a-past-tax-lien-or-judgment-on-my-credit-report-prevent-sba-7-a-loan-approval"},{"question":"Does a past civil lawsuit or judgment, not criminal, affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-a-past-civil-lawsuit-or-judgment-not-criminal-affect-my-eligibility-for-an-sba-7-a-lo"},{"question":"Will an outstanding personal judgment (e.g., from a civil lawsuit) prevent me from getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/will-an-outstanding-personal-judgment-e-g-from-a-civil-lawsuit-prevent-me-from-getting-an-"},{"question":"Will a satisfied judgment on my personal credit report, even if paid, negatively impact my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-a-satisfied-judgment-on-my-personal-credit-report-even-if-paid-negatively-impact-my-s"}]},"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 — Deficiency judgment","url":"https://dealroom.so/glossary/deficiency-judgment","source_type":"DealRoom Data"}}