{"ok":true,"canonical_url":"https://dealroom.so/glossary/formal-loan-agreement","api_url":"https://dealroom.so/api/public/glossary/formal-loan-agreement","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":"formal-loan-agreement","term":"Formal Loan Agreement","group":"People and paperwork","definition":"The legally binding contract between you (the borrower) and the lender, detailing all terms and conditions of your SBA loan. This is the document you sign at closing.","what_it_means":"The Formal Loan Agreement outlines your repayment schedule, interest rate, collateral pledged, covenants, and all other legal obligations. Before signing, ensure you understand every clause, especially those related to reporting requirements, default triggers, and any personal guarantees. It's the definitive document governing your debt.","url":"https://dealroom.so/glossary/formal-loan-agreement","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":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"note","term":"Note","url":"https://dealroom.so/glossary/note"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"}],"related_questions":[{"question":"What specific due diligence is required for an unlisted franchise agreement lacking SBA formal review?","url":"https://dealroom.so/for-lenders/questions/what-specific-due-diligence-is-required-for-an-unlisted-franchise-agreement-lacking-sba-fo"},{"question":"What are the specific eligibility requirements for a franchise agreement that lacks a formal review or listing on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-eligibility-requirements-for-a-franchise-agreement-that-lacks-a-form"},{"question":"Do I need a formal business plan to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-a-formal-business-plan-to-apply-for-an-sba-7-a-loan"},{"question":"Does the SBA require me to create a formal business plan to apply?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-require-me-to-create-a-formal-business-plan-to-apply"},{"question":"Do I need to write a formal business plan to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-write-a-formal-business-plan-to-apply-for-an-sba-7-a-loan"},{"question":"Do I need to create a formal business plan to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-create-a-formal-business-plan-to-apply-for-an-sba-7-a-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 — Formal Loan Agreement","url":"https://dealroom.so/glossary/formal-loan-agreement","source_type":"DealRoom Data"}}