{"ok":true,"canonical_url":"https://dealroom.so/glossary/guarantee-impairment","api_url":"https://dealroom.so/api/public/glossary/guarantee-impairment","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":"guarantee-impairment","term":"Guarantee impairment","group":"The loan itself","definition":"This occurs when a lender fails to follow SBA rules, potentially reducing or canceling the SBA's guarantee on your loan. It means the lender might be on the hook for more of the loss if you default.","what_it_means":"If your lender doesn't adhere to SBA regulations during origination, servicing, or liquidation, the SBA can reduce or deny their claim on the guaranty. As a buyer, ensure your lender follows all rules, as an impaired guarantee could signal issues with loan terms or lender competence, though it primarily affects the lender.","url":"https://dealroom.so/glossary/guarantee-impairment","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":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"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":"servicing-deficiency","term":"Servicing deficiency","url":"https://dealroom.so/glossary/servicing-deficiency"}],"related_questions":[{"question":"Who must personally guarantee an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/who-must-personally-guarantee-an-sba-7-a-loan"},{"question":"What does 'SBA guarantee' actually mean for me, the borrower?","url":"https://dealroom.so/sba-loans/basics/what-does-sba-guarantee-actually-mean-for-me-the-borrower"},{"question":"What does the 'SBA guarantee' actually mean for me, the borrower?","url":"https://dealroom.so/sba-loans/basics/what-does-the-sba-guarantee-actually-mean-for-me-the-borrower"},{"question":"How does the SBA guarantee help my business secure a loan?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-guarantee-help-my-business-secure-a-loan"},{"question":"What is the minimum ownership percentage that requires a personal guarantee?","url":"https://dealroom.so/sba-loans/basics/what-is-the-minimum-ownership-percentage-that-requires-a-personal-guarantee"},{"question":"Are non-owner spouses always required to personally guarantee SBA loans?","url":"https://dealroom.so/sba-7a/questions/are-non-owner-spouses-always-required-to-personally-guarantee-sba-loans"}]},"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 — Guarantee impairment","url":"https://dealroom.so/glossary/guarantee-impairment","source_type":"DealRoom Data"}}