{"ok":true,"canonical_url":"https://dealroom.so/glossary/extenuating-circumstance","api_url":"https://dealroom.so/api/public/glossary/extenuating-circumstance","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":"extenuating-circumstance","term":"Extenuating Circumstance","group":"Doing the deal","definition":"An unusual, unforeseen event that justifies an exception to standard loan program rules or policy. It's a rare allowance for unique situations.","what_it_means":"The SBA has strict rules, but in very limited cases, an extenuating circumstance can allow for a deviation from standard policy, often requiring a formal waiver. Don't rely on this; it's not a loophole, but rather an infrequent exception for truly unavoidable situations.","url":"https://dealroom.so/glossary/extenuating-circumstance","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":"loan-amendment","term":"Loan Amendment","url":"https://dealroom.so/glossary/loan-amendment"},{"slug":"eligibility-certification","term":"Eligibility Certification","url":"https://dealroom.so/glossary/eligibility-certification"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"}],"related_questions":[{"question":"Are there specific circumstances where a lender can waive a required personal guaranty for an owner?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-circumstances-where-a-lender-can-waive-a-required-personal-guaranty-for"},{"question":"Are there any circumstances where an SBA 7(a) loan can be used for personal debts?","url":"https://dealroom.so/sba-loans/basics/are-there-any-circumstances-where-an-sba-7-a-loan-can-be-used-for-personal-debts"},{"question":"How does the 'totality of the circumstances' rule apply when determining affiliation for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-the-totality-of-the-circumstances-rule-apply-when-determining-affiliation-for-sba"},{"question":"Under what circumstances can a lender waive a required personal guaranty for a 7(a) loan principal?","url":"https://dealroom.so/for-lenders/questions/under-what-circumstances-can-a-lender-waive-a-required-personal-guaranty-for-a-7-a-loan-pr"},{"question":"Are there specific circumstances where the SBA might require a corporate guaranty in addition to personal guarantees?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-circumstances-where-the-sba-might-require-a-corporate-guaranty-in-addit"},{"question":"Are there specific circumstances under which the upfront SBA 7(a) loan guaranty fee can be waived?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-circumstances-under-which-the-upfront-sba-7-a-loan-guaranty-fee-can-be-"}]},"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 — Extenuating Circumstance","url":"https://dealroom.so/glossary/extenuating-circumstance","source_type":"DealRoom Data"}}