{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-debarment","api_url":"https://dealroom.so/api/public/glossary/federal-debarment","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":"federal-debarment","term":"Federal debarment","aka":"Debarred from federal programs","group":"People and paperwork","definition":"Federal debarment means you're banned from doing business with the government. If the seller or business is debarred, your SBA loan won't close, as it's a federal program.","what_it_means":"The SBA checks if you, the seller, or the business itself are debarred from any federal program. This is a red flag for the SBA because it means a past serious infraction, like fraud. Your lender will run checks, and if debarment is found, the deal stops.","url":"https://dealroom.so/glossary/federal-debarment","official_sources":[{"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"},{"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":"suspension","term":"Suspension","url":"https://dealroom.so/glossary/suspension"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"}],"related_questions":[{"question":"What if a business applicant has outstanding federal tax liens or delinquencies?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-applicant-has-outstanding-federal-tax-liens-or-delinquencies"},{"question":"What if a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/for-lenders/questions/what-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"},{"question":"What happens if a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"},{"question":"What happens if a business has outstanding federal taxes when applying for an SBA loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-a-business-has-outstanding-federal-taxes-when-applying-for-an-sba-loan"},{"question":"Can a business owner with delinquent federal debt still be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-business-owner-with-delinquent-federal-debt-still-be-eligible-for-a-7-a-loan"},{"question":"Will a past federal student loan default, now rehabilitated, affect my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-a-past-federal-student-loan-default-now-rehabilitated-affect-my-sba-7-a-loan-approval"}]},"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 — Federal debarment","url":"https://dealroom.so/glossary/federal-debarment","source_type":"DealRoom Data"}}