{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-debt-delinquency","api_url":"https://dealroom.so/api/public/glossary/federal-debt-delinquency","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-delinquency","term":"Federal Debt Delinquency","aka":"Defaults on federal debt","group":"Reading the business","definition":"Being behind on payments or having defaulted on a loan or debt owed to the U.S. government. This can include prior SBA loans, student loans, or tax debts.","what_it_means":"A federal debt delinquency for you or any key principal is a major red flag and makes you ineligible for an SBA loan. Lenders check the CAIVRS database. You must resolve any such delinquencies before your loan can be approved.","url":"https://dealroom.so/glossary/federal-debt-delinquency","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":"caivrs-database","term":"CAIVRS Database","url":"https://dealroom.so/glossary/caivrs-database"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"},{"slug":"eligibility-certification","term":"Eligibility Certification","url":"https://dealroom.so/glossary/eligibility-certification"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"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"},{"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-"}]},"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 Delinquency","url":"https://dealroom.so/glossary/federal-debt-delinquency","source_type":"DealRoom Data"}}