{"ok":true,"canonical_url":"https://dealroom.so/glossary/guarantee-payment","api_url":"https://dealroom.so/api/public/glossary/guarantee-payment","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-payment","term":"Guarantee payment","group":"The loan itself","definition":"A guarantee payment is the reimbursement the SBA makes to a lender when an SBA-guaranteed loan defaults and the lender suffers a loss. This is what the guarantee actually does.","what_it_means":"If your business defaults on its 7(a) loan, the lender will first try to collect from you and liquidate collateral. If there's still a shortfall, the lender can submit a \"guaranty purchase request\" to the SBA. The SBA then reviews the request and, if approved, makes a guarantee payment to the lender for the guaranteed portion of the loss. This is an internal process between SBA and lender.","url":"https://dealroom.so/glossary/guarantee-payment","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-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"guaranty-purchase-request","term":"Guaranty purchase request","url":"https://dealroom.so/glossary/guaranty-purchase-request"},{"slug":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"sba-loan-guarantee","term":"SBA loan guarantee","url":"https://dealroom.so/glossary/sba-loan-guarantee"}],"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 payment","url":"https://dealroom.so/glossary/guarantee-payment","source_type":"DealRoom Data"}}