{"ok":true,"canonical_url":"https://dealroom.so/glossary/delinquent-federal-debt","api_url":"https://dealroom.so/api/public/glossary/delinquent-federal-debt","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":"delinquent-federal-debt","term":"Delinquent Federal Debt","group":"People and paperwork","definition":"This refers to unpaid debts owed to the U.S. government, such as back taxes, student loans, or prior SBA loans. It makes you ineligible for a new SBA loan.","what_it_means":"Before applying, verify you and any key principals have no outstanding federal debts. Lenders check this during underwriting. If you have any, you must resolve them or be on an approved repayment plan before your loan can be approved.","url":"https://dealroom.so/glossary/delinquent-federal-debt","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":"eligibility-bar","term":"Eligibility Bar","url":"https://dealroom.so/glossary/eligibility-bar"},{"slug":"financial-responsibility","term":"Financial Responsibility","url":"https://dealroom.so/glossary/financial-responsibility"},{"slug":"ineligibility-at-origination","term":"Ineligibility at Origination","url":"https://dealroom.so/glossary/ineligibility-at-origination"},{"slug":"sba-loan-default","term":"SBA Loan Default","url":"https://dealroom.so/glossary/sba-loan-default"}],"related_questions":[{"question":"Can a business owner with delinquent federal debt still be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-business-owner-with-delinquent-federal-debt-still-be-eligible-for-a-7-a-loan"},{"question":"What is the impact if a 7(a) loan borrower becomes delinquent on their federal taxes after loan closing?","url":"https://dealroom.so/for-lenders/questions/what-is-the-impact-if-a-7-a-loan-borrower-becomes-delinquent-on-their-federal-taxes-after-"},{"question":"What steps must a lender take if a 7(a) loan becomes delinquent due to the borrower's federal tax liens?","url":"https://dealroom.so/for-lenders/questions/what-steps-must-a-lender-take-if-a-7-a-loan-becomes-delinquent-due-to-the-borrower-s-feder"},{"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 happens if my business has outstanding federal taxes, like IRS debt, when applying for an SBA loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-has-outstanding-federal-taxes-like-irs-debt-when-applying-for-"},{"question":"What happens if a buyer has defaulted on a previous federal debt, like a student loan or a prior SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-buyer-has-defaulted-on-a-previous-federal-debt-like-a-student-loan-or-a-"}]},"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 — Delinquent Federal Debt","url":"https://dealroom.so/glossary/delinquent-federal-debt","source_type":"DealRoom Data"}}