{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-debt","api_url":"https://dealroom.so/api/public/glossary/federal-debt","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-debt","term":"Federal Debt","group":"People and paperwork","definition":"This refers to any outstanding debt owed to the U.S. government, such as student loans, tax liens, or prior SBA loans. Having unresolvable federal debt can disqualify you.","what_it_means":"The SBA requires that all principals of the borrowing entity not be delinquent on any federal debt. Lenders will check various databases. If you have any outstanding federal debt, you must either resolve it or be on a payment plan in good standing before your loan can be approved.","url":"https://dealroom.so/glossary/federal-debt","official_sources":[{"slug":"sba-form-1919","title":"SBA Form 1919 — Borrower Information Form","official_url":"https://www.sba.gov/document/sba-form-1919-borrower-information-form","official_label":"View on SBA.gov","authority_tier":4,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sba-form-1919"},{"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":"character","term":"Character","url":"https://dealroom.so/glossary/character"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"},{"slug":"tax-return","term":"Tax return","url":"https://dealroom.so/glossary/tax-return"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"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":"Can I get an SBA 7(a) loan if I have defaulted on a previous federal debt?","url":"https://dealroom.so/sba-loans/basics/can-i-get-an-sba-7-a-loan-if-i-have-defaulted-on-a-previous-federal-debt"},{"question":"What happens if my business has outstanding federal taxes, like IRS debt, when applying for an SBA loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-has-outstanding-federal-taxes-like-irs-debt-when-applying-for-"},{"question":"What happens if a buyer has defaulted on a previous federal debt, like a student loan or a prior SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-buyer-has-defaulted-on-a-previous-federal-debt-like-a-student-loan-or-a-"},{"question":"How does a borrower's prior federal debt delinquency or default (e.g., tax lien) impact their 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-a-borrower-s-prior-federal-debt-delinquency-or-default-e-g-tax-lien-impact-their-"},{"question":"How does the lender determine if a prior federal debt delinquency or default (e.g., student loan, tax lien) impacts 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-the-lender-determine-if-a-prior-federal-debt-delinquency-or-default-e-g-student-l"}]},"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 Debt","url":"https://dealroom.so/glossary/federal-debt","source_type":"DealRoom Data"}}