{"ok":true,"canonical_url":"https://dealroom.so/glossary/imprudent-lending","api_url":"https://dealroom.so/api/public/glossary/imprudent-lending","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":"imprudent-lending","term":"Imprudent lending","group":"The loan itself","definition":"This refers to a lender making a loan without following sound underwriting practices or without sufficient assurance of repayment. The SBA can deny its guaranty if the lender acted imprudently.","what_it_means":"The SBA requires lenders to use","url":"https://dealroom.so/glossary/imprudent-lending","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":"prudent-lending-standards","term":"Prudent lending standards","url":"https://dealroom.so/glossary/prudent-lending-standards"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"What constitutes prudent lending standards for SBA 7(a) underwriting?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-lending-standards-for-sba-7-a-underwriting"},{"question":"What specific advantages does the SBA guaranty offer to the *lending bank*?","url":"https://dealroom.so/sba-loans/basics/what-specific-advantages-does-the-sba-guaranty-offer-to-the-lending-bank"},{"question":"What does the SBA 'guaranty' really mean for a bank lending money?","url":"https://dealroom.so/sba-loans/basics/what-does-the-sba-guaranty-really-mean-for-a-bank-lending-money"},{"question":"What constitutes prudent lending standards for SBA 7(a) underwriting regarding credit analysis?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-lending-standards-for-sba-7-a-underwriting-regarding-credit-analy"},{"question":"How does the SBA assess \"prudent lending standards\" in 7(a) loan underwriting?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-assess-prudent-lending-standards-in-7-a-loan-underwriting"},{"question":"How does the 'not engaged in lending' rule apply to a loan applicant?","url":"https://dealroom.so/for-lenders/questions/how-does-the-not-engaged-in-lending-rule-apply-to-a-loan-applicant"}]},"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 — Imprudent lending","url":"https://dealroom.so/glossary/imprudent-lending","source_type":"DealRoom Data"}}