{"ok":true,"canonical_url":"https://dealroom.so/glossary/disguised-loan","api_url":"https://dealroom.so/api/public/glossary/disguised-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":"disguised-loan","term":"Disguised loan","group":"Your money in the deal","definition":"This refers to funds that appear to be equity injection but are actually a loan in disguise, often with an unwritten repayment expectation. The SBA strictly prohibits disguised loans as part of your down payment.","what_it_means":"Lenders look for round-tripped funds or contributions from related parties that lack proper documentation. Any funds you claim as out of pocket equity must be verifiably yours and not subject to an unwritten repayment obligation to avoid being flagged as a disguised loan.","url":"https://dealroom.so/glossary/disguised-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"}],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"slug":"round-tripped","term":"Round-tripped","url":"https://dealroom.so/glossary/round-tripped"},{"slug":"borrowed-funds","term":"Borrowed funds","url":"https://dealroom.so/glossary/borrowed-funds"}],"related_questions":[{"question":"Are SBA 7(a) loans only for businesses unable to get traditional bank loans?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-businesses-unable-to-get-traditional-bank-loans"},{"question":"What exactly is an SBA 7(a) loan, and who offers these loans?","url":"https://dealroom.so/sba-loans/basics/what-exactly-is-an-sba-7-a-loan-and-who-offers-these-loans"},{"question":"How do SBA 7(a) loan interest rates compare to standard commercial loans?","url":"https://dealroom.so/sba-loans/basics/how-do-sba-7-a-loan-interest-rates-compare-to-standard-commercial-loans"},{"question":"What makes an SBA 7(a) loan 'government-backed' compared to other loans?","url":"https://dealroom.so/sba-loans/basics/what-makes-an-sba-7-a-loan-government-backed-compared-to-other-loans"},{"question":"Does the SBA check for past defaults on federal debts, like student loans or prior SBA loans?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-check-for-past-defaults-on-federal-debts-like-student-loans-or-prior-sba-loan"},{"question":"How do SBA loan guaranty fees for FY2026 apply to loans below $500,000?","url":"https://dealroom.so/for-lenders/questions/how-do-sba-loan-guaranty-fees-for-fy2026-apply-to-loans-below-500-000"}]},"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 — Disguised loan","url":"https://dealroom.so/glossary/disguised-loan","source_type":"DealRoom Data"}}