{"ok":true,"canonical_url":"https://dealroom.so/glossary/delinquency","api_url":"https://dealroom.so/api/public/glossary/delinquency","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":"delinquency","term":"Delinquency","group":"The loan itself","definition":"This is when a borrower misses a loan payment. For a buyer, understanding the seller's past delinquencies on business debts is crucial, as it indicates repayment capacity and financial health.","what_it_means":"If the business you're buying has a history of loan delinquencies, it's a red flag. Lenders will scrutinize this during underwriting to assess the business's ability to service new debt, impacting your approval odds. You need to understand why these occurred and if the underlying issues have been resolved.","url":"https://dealroom.so/glossary/delinquency","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":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"}],"related_questions":[{"question":"How does a borrower's prior federal debt delinquency or default (e.g., tax lien) impact their 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-a-borrower-s-prior-federal-debt-delinquency-or-default-e-g-tax-lien-impact-their-"},{"question":"How does the lender determine if a prior federal debt delinquency or default (e.g., student loan, tax lien) impacts 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-the-lender-determine-if-a-prior-federal-debt-delinquency-or-default-e-g-student-l"}]},"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 — Delinquency","url":"https://dealroom.so/glossary/delinquency","source_type":"DealRoom Data"}}