{"ok":true,"canonical_url":"https://dealroom.so/glossary/direct-loan","api_url":"https://dealroom.so/api/public/glossary/direct-loan","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":"direct-loan","term":"Direct Loan","group":"The loan itself","definition":"A loan made directly by the SBA, rather than through a bank or credit union. These are rare for 7(a) acquisitions and not the typical financing route.","what_it_means":"The vast majority of SBA 7(a) loans are actually made by private lenders, like banks, and then guaranteed by the SBA. Direct loans from the SBA are generally reserved for disaster relief or specific small programs, not standard business acquisitions. You will almost certainly work with an SBA-approved private lender.","url":"https://dealroom.so/glossary/direct-loan","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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"preferred-lender","term":"Preferred Lender","url":"https://dealroom.so/glossary/preferred-lender"},{"slug":"conventional-loan","term":"Conventional loan","url":"https://dealroom.so/glossary/conventional-loan"}],"related_questions":[{"question":"What is the primary difference between a \"direct\" loan and an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-difference-between-a-direct-loan-and-an-sba-7-a-loan"},{"question":"If I have no direct industry experience but strong management background, can I get an SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-have-no-direct-industry-experience-but-strong-management-background-can-i-get-an-sba-"},{"question":"Does the SBA itself charge any direct fees to the borrower, or just the lender?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-itself-charge-any-direct-fees-to-the-borrower-or-just-the-lender"},{"question":"What are the specific thresholds or rules for determining affiliation based on common management, beyond direct ownership?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-thresholds-or-rules-for-determining-affiliation-based-on-common-mana"},{"question":"How does the SBA define an 'associate' for affiliation purposes under 13 CFR 121, beyond direct ownership?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-an-associate-for-affiliation-purposes-under-13-cfr-121-beyond-dire"},{"question":"Can an SBA 7(a) loan be used to purchase a business that is a direct competitor of the seller?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-that-is-a-direct-competitor-of-the-sell"}]},"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 — Direct Loan","url":"https://dealroom.so/glossary/direct-loan","source_type":"DealRoom Data"}}