{"ok":true,"canonical_url":"https://dealroom.so/glossary/lender-of-last-resort","api_url":"https://dealroom.so/api/public/glossary/lender-of-last-resort","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":"lender-of-last-resort","term":"Lender of last resort","group":"The loan itself","definition":"This describes the SBA's role in providing financing when conventional lenders are unwilling or unable to do so on reasonable terms. It's not a sign of poor credit, but rather market necessity.","what_it_means":"The SBA acts as a lender of last resort due to its \"Credit Not Available Elsewhere rule.\" This means the SBA's guarantee is there to help small businesses that can't access capital through traditional channels. Don't view it as a negative; it's simply how the program is structured to support small business growth.","url":"https://dealroom.so/glossary/lender-of-last-resort","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":"credit-not-available-elsewhere-rule","term":"Credit Not Available Elsewhere rule","url":"https://dealroom.so/glossary/credit-not-available-elsewhere-rule"},{"slug":"conventional-loan","term":"Conventional loan","url":"https://dealroom.so/glossary/conventional-loan"},{"slug":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"How long can I expect the working capital portion of my SBA 7(a) loan to last?","url":"https://dealroom.so/sba-7a/questions/how-long-can-i-expect-the-working-capital-portion-of-my-sba-7-a-loan-to-last"},{"question":"How long does the SBA guarantee last on a 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-long-does-the-sba-guarantee-last-on-a-7-a-loan"},{"question":"What if the business I'm acquiring has poor historical cash flow or declining revenues for the last two years?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-poor-historical-cash-flow-or-declining-revenues-for"},{"question":"How does a collateral assignment of life insurance protect a lender?","url":"https://dealroom.so/sba-7a/questions/how-does-a-collateral-assignment-of-life-insurance-protect-a-lender"},{"question":"What are the benefits of the SBA guaranty for the lender?","url":"https://dealroom.so/sba-loans/basics/what-are-the-benefits-of-the-sba-guaranty-for-the-lender"},{"question":"What are the consequences for a lender if a previously sold guaranteed portion of a loan defaults due to lender error?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-for-a-lender-if-a-previously-sold-guaranteed-portion-of-a-loan-d"}]},"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 — Lender of last resort","url":"https://dealroom.so/glossary/lender-of-last-resort","source_type":"DealRoom Data"}}