{"ok":true,"canonical_url":"https://dealroom.so/glossary/event-of-default","api_url":"https://dealroom.so/api/public/glossary/event-of-default","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":"event-of-default","term":"Event of Default","group":"The loan itself","definition":"A failure to meet the terms of your loan agreement, such as missing payments or violating covenants. This triggers the lender's right to take action, potentially demanding full repayment.","what_it_means":"If you trigger an Event of Default on your SBA 7(a) loan, the lender can declare the entire loan due immediately. This can lead to the \"Acceleration of Debt\" and liquidation of collateral. Understand all loan covenants, not just payment terms, to avoid this serious situation.","url":"https://dealroom.so/glossary/event-of-default","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":"acceleration-of-debt","term":"Acceleration of Debt","url":"https://dealroom.so/glossary/acceleration-of-debt"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"How does a lender assess the impact of a significant post-closing event on the borrower's ability to repay a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-the-impact-of-a-significant-post-closing-event-on-the-borrower-s-"},{"question":"What happens if a significant post-closing event impacts the borrower's ability to repay an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-significant-post-closing-event-impacts-the-borrower-s-ability-to-repay-a"},{"question":"What is the specific timeframe for a lender to notify the SBA of a 7(a) loan default?","url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-timeframe-for-a-lender-to-notify-the-sba-of-a-7-a-loan-default"},{"question":"What happens if I default on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-i-default-on-an-sba-7-a-loan"},{"question":"What constitutes a \"material default\" by a 7(a) lender that would lead to an outright denial of a guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-default-by-a-7-a-lender-that-would-lead-to-an-outright-denial-"},{"question":"How does a lender request an SBA guaranty purchase after loan default?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-sba-guaranty-purchase-after-loan-default"}]},"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 — Event of Default","url":"https://dealroom.so/glossary/event-of-default","source_type":"DealRoom Data"}}