{"ok":true,"canonical_url":"https://dealroom.so/glossary/denial-of-the-guaranty","api_url":"https://dealroom.so/api/public/glossary/denial-of-the-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-the-guaranty","term":"Denial of the Guaranty","group":"The loan itself","definition":"This occurs when the SBA refuses to honor its promise to cover a portion of a defaulted loan. This happens if the lender didn't follow SBA rules.","what_it_means":"If your SBA loan defaults, the lender will seek reimbursement from the SBA for the guaranteed portion. However, if the lender made serious errors in origination or servicing, the SBA can deny the guaranty. This doesn't directly impact you as the borrower, but it's why lenders are so diligent about following SBA rules.","url":"https://dealroom.so/glossary/denial-of-the-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":"call-of-the-guaranty","term":"Call of the guaranty","url":"https://dealroom.so/glossary/call-of-the-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":"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 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":"What are common causes for a \"repair\" to the SBA guaranty rather than a full denial of the purchase request?","url":"https://dealroom.so/for-lenders/questions/what-are-common-causes-for-a-repair-to-the-sba-guaranty-rather-than-a-full-denial-of-the-p"},{"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 the Guaranty","url":"https://dealroom.so/glossary/denial-of-the-guaranty","source_type":"DealRoom Data"}}