{"ok":true,"canonical_url":"https://dealroom.so/glossary/denial-of-guaranty","api_url":"https://dealroom.so/api/public/glossary/denial-of-guaranty","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":"denial-of-guaranty","term":"Denial of Guaranty","group":"The loan itself","definition":"This is when the SBA completely refuses to honor its guaranty to the lender, typically due to significant violations of program requirements by the lender. The lender is then solely responsible for the defaulted loan.","what_it_means":"A Denial of Guaranty is a severe consequence for a lender, meaning the SBA will not pay out on its promise. This usually happens after a major servicing deficiency or origination error. As a borrower, understanding this reinforces the importance of working with a compliant lender and ensuring all your paperwork is accurate to avoid any issues that could lead to such a denial.","url":"https://dealroom.so/glossary/denial-of-guaranty","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":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"repair-of-guaranty","term":"Repair of Guaranty","url":"https://dealroom.so/glossary/repair-of-guaranty"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"servicing-deficiency","term":"Servicing deficiency","url":"https://dealroom.so/glossary/servicing-deficiency"}],"related_questions":[{"question":"What are common eligibility failures during origination that lead to an outright denial of the SBA guaranty?","url":"https://dealroom.so/for-lenders/questions/what-are-common-eligibility-failures-during-origination-that-lead-to-an-outright-denial-of"},{"question":"What specific lender actions or omissions can lead to a repair of the SBA guaranty, short of a full denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-lender-actions-or-omissions-can-lead-to-a-repair-of-the-sba-guaranty-short-o"},{"question":"What common errors in loan closing documentation typically lead to a 'denial' of the SBA guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-common-errors-in-loan-closing-documentation-typically-lead-to-a-denial-of-the-sba-gua"},{"question":"If the SBA issues a denial of the 7(a) guaranty, what recourse or action can the lender take?","url":"https://dealroom.so/for-lenders/questions/if-the-sba-issues-a-denial-of-the-7-a-guaranty-what-recourse-or-action-can-the-lender-take"},{"question":"What specific examples of failing 'prudent lending standards' by a lender can lead to a repair or denial of a 7(a) guaranty?","url":"https://dealroom.so/for-lenders/questions/what-specific-examples-of-failing-prudent-lending-standards-by-a-lender-can-lead-to-a-repa"},{"question":"How does inadequate collateral documentation by a lender lead to a repair or denial of the SBA 7(a) guaranty?","url":"https://dealroom.so/for-lenders/questions/how-does-inadequate-collateral-documentation-by-a-lender-lead-to-a-repair-or-denial-of-the"}]},"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 — Denial of Guaranty","url":"https://dealroom.so/glossary/denial-of-guaranty","source_type":"DealRoom Data"}}