{"ok":true,"canonical_url":"https://dealroom.so/glossary/disallowance","api_url":"https://dealroom.so/api/public/glossary/disallowance","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":"disallowance","term":"Disallowance","group":"The loan itself","definition":"When the SBA refuses to honor its guaranty to a lender, typically because the lender failed to follow SBA rules during origination or servicing.","what_it_means":"A disallowance means the lender takes a loss on the guaranteed portion of the loan. While it doesn't directly impact your obligation to repay the loan, it underscores the importance of working with an experienced lender who adheres strictly to SBA regulations to ensure the loan is properly structured and eligible.","url":"https://dealroom.so/glossary/disallowance","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":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"servicing-deficiency","term":"Servicing deficiency","url":"https://dealroom.so/glossary/servicing-deficiency"},{"slug":"origination","term":"Origination","url":"https://dealroom.so/glossary/origination"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[]},"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 — Disallowance","url":"https://dealroom.so/glossary/disallowance","source_type":"DealRoom Data"}}