{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-obligation","api_url":"https://dealroom.so/api/public/glossary/federal-obligation","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-obligation","term":"Federal obligation","group":"Reading the business","definition":"This is any debt or duty owed to the U.S. federal government, including taxes, fines, or loan defaults. It can prevent a business or individual from receiving new federal assistance.","what_it_means":"Lenders will check if the seller or the business has outstanding federal obligations, as this can affect eligibility for an SBA loan. Ensure all such obligations are cleared before closing, as they can cause significant delays or even derail the deal.","url":"https://dealroom.so/glossary/federal-obligation","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":"outstanding-federal-taxes","term":"Outstanding federal taxes","url":"https://dealroom.so/glossary/outstanding-federal-taxes"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"personal-judgment","term":"Personal judgment","url":"https://dealroom.so/glossary/personal-judgment"}],"related_questions":[{"question":"What happens to my personal guaranty obligation if I later sell the business?","url":"https://dealroom.so/sba-7a/questions/what-happens-to-my-personal-guaranty-obligation-if-i-later-sell-the-business"},{"question":"If I sell the business, does the new owner inherit the prepayment penalty obligation for the SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-sell-the-business-does-the-new-owner-inherit-the-prepayment-penalty-obligation-for-th"},{"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"}]},"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 obligation","url":"https://dealroom.so/glossary/federal-obligation","source_type":"DealRoom Data"}}