{"ok":true,"canonical_url":"https://dealroom.so/glossary/government-debt-default","api_url":"https://dealroom.so/api/public/glossary/government-debt-default","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":"government-debt-default","term":"Government Debt Default","group":"The loan itself","definition":"Failing to repay any debt owed to the U.S. government, including prior SBA loans, student loans, or taxes. This makes you ineligible for a new SBA loan.","what_it_means":"Lenders check for prior government debt defaults as part of your eligibility. If you or any key principal has defaulted on government debt, you must resolve it before applying for an SBA 7(a) loan. This is a hard stop for eligibility.","url":"https://dealroom.so/glossary/government-debt-default","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":"ineligible-purpose","term":"Ineligible Purpose","url":"https://dealroom.so/glossary/ineligible-purpose"},{"slug":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"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 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 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":"What happens if I default on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-i-default-on-an-sba-7-a-loan"},{"question":"How does a lender request an SBA guaranty purchase after loan default?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-sba-guaranty-purchase-after-loan-default"}]},"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 — Government Debt Default","url":"https://dealroom.so/glossary/government-debt-default","source_type":"DealRoom Data"}}