{"ok":true,"canonical_url":"https://dealroom.so/glossary/derogatory-mark","api_url":"https://dealroom.so/api/public/glossary/derogatory-mark","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":"derogatory-mark","term":"Derogatory mark","group":"Reading the business","definition":"A derogatory mark is a negative entry on your credit report, like a late payment or bankruptcy. It signals to lenders that you may be a higher credit risk.","what_it_means":"Derogatory marks on your personal credit report, such as bankruptcies, foreclosures, or significant late payments, will be closely scrutinized during the SBA 7(a) loan underwriting process. You'll need to explain these issues and demonstrate that they won't impact your ability to repay the new business loan.","url":"https://dealroom.so/glossary/derogatory-mark","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"}],"related":[{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"},{"slug":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"},{"slug":"bankruptcy","term":"Bankruptcy","url":"https://dealroom.so/glossary/bankruptcy"}],"related_questions":[{"question":"Can personal marketable securities (stocks/bonds) be used as collateral if business assets are insufficient?","url":"https://dealroom.so/sba-7a/questions/can-personal-marketable-securities-stocks-bonds-be-used-as-collateral-if-business-assets-a"},{"question":"Can pledged marketable securities, like stocks, serve as additional collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-pledged-marketable-securities-like-stocks-serve-as-additional-collateral-for-an-sba-7-"},{"question":"What criteria justify a lender waiving a lien on readily marketable personal assets from a guarantor?","url":"https://dealroom.so/for-lenders/questions/what-criteria-justify-a-lender-waiving-a-lien-on-readily-marketable-personal-assets-from-a"},{"question":"When can a lender waive the requirement for a lien on readily marketable personal assets of a guarantor?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-waive-the-requirement-for-a-lien-on-readily-marketable-personal-assets-o"},{"question":"Are marketing and advertising expenses allowed uses for 7(a) loan funds?","url":"https://dealroom.so/sba-loans/basics/are-marketing-and-advertising-expenses-allowed-uses-for-7-a-loan-funds"},{"question":"Can working capital funds be used for post-acquisition marketing and advertising campaigns?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-funds-be-used-for-post-acquisition-marketing-and-advertising-campaigns"}]},"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 — Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark","source_type":"DealRoom Data"}}