{"ok":true,"canonical_url":"https://dealroom.so/glossary/guaranty-purchase","api_url":"https://dealroom.so/api/public/glossary/guaranty-purchase","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":"guaranty-purchase","term":"Guaranty Purchase","group":"The loan itself","definition":"When a defaulted SBA loan is too far gone for the lender to collect, the SBA \"buys\" the guaranteed portion of the loan from the lender. This kicks off the SBA's own collection efforts.","what_it_means":"If your business defaults on an SBA loan and the lender can't recover sufficient funds, they'll submit a \"guaranty purchase request\" to the SBA. The SBA then pays the lender the guaranteed percentage of the outstanding balance. This doesn't relieve you of your debt; the SBA just takes over collection for the guaranteed part, potentially leading to a \"call of the guaranty\" and personal collection.","url":"https://dealroom.so/glossary/guaranty-purchase","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":"guaranty-repair","term":"Guaranty Repair","url":"https://dealroom.so/glossary/guaranty-repair"},{"slug":"guaranty-denial","term":"Guaranty Denial","url":"https://dealroom.so/glossary/guaranty-denial"},{"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":"What documentation is required to request a guaranty purchase using the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-request-a-guaranty-purchase-using-the-universal-purchase"},{"question":"What specific documentation must a lender include in a Universal Purchase Package (UPP) for a guaranty purchase?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-must-a-lender-include-in-a-universal-purchase-package-upp-for-"},{"question":"What documentation is required for a lender to request a guaranty purchase using the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-for-a-lender-to-request-a-guaranty-purchase-using-the-unive"},{"question":"What impact does a lender's failure to obtain a required personal guaranty have on a guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-impact-does-a-lender-s-failure-to-obtain-a-required-personal-guaranty-have-on-a-guara"},{"question":"What are the key elements a lender must include in a Universal Purchase Package (UPP) submission for guaranty purchase?","url":"https://dealroom.so/for-lenders/questions/what-are-the-key-elements-a-lender-must-include-in-a-universal-purchase-package-upp-submis"},{"question":"What specific documentation is required for a lender to request a guaranty purchase using the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-for-a-lender-to-request-a-guaranty-purchase-using-"}]},"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 — Guaranty Purchase","url":"https://dealroom.so/glossary/guaranty-purchase","source_type":"DealRoom Data"}}