{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-performance","api_url":"https://dealroom.so/api/public/glossary/loan-performance","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":"loan-performance","term":"Loan performance","group":"The loan itself","definition":"This refers to how well a borrower is meeting their loan repayment obligations. For an SBA loan, good performance means making timely payments according to the agreed-upon terms, avoiding default.","what_it_means":"Lenders monitor your \"loan performance\" closely. Maintaining a \"performing status\" by making all principal and interest payments on time is critical. Poor performance can lead to late fees, a \"default rate,\" and ultimately, \"loan default\" and a \"call of the guaranty.\"","url":"https://dealroom.so/glossary/loan-performance","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"}],"related":[{"slug":"performing-status","term":"Performing status","url":"https://dealroom.so/glossary/performing-status"},{"slug":"default-rate","term":"Default rate","url":"https://dealroom.so/glossary/default-rate"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"restructuring-of-payments","term":"Restructuring of payments","url":"https://dealroom.so/glossary/restructuring-of-payments"}],"related_questions":[{"question":"How often does the SBA require lenders to report on 7(a) loan portfolio performance?","url":"https://dealroom.so/for-lenders/questions/how-often-does-the-sba-require-lenders-to-report-on-7-a-loan-portfolio-performance"},{"question":"Can a significant change in the business's financial performance during due diligence kill approval?","url":"https://dealroom.so/sba-7a/questions/can-a-significant-change-in-the-business-s-financial-performance-during-due-diligence-kill"},{"question":"Are there specific financial performance requirements for a franchise to be eligible for SBA financing?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-financial-performance-requirements-for-a-franchise-to-be-eligible-for-s"},{"question":"How often does the SBA require lenders to report on 7(a) loan portfolio performance for secondary market purposes?","url":"https://dealroom.so/for-lenders/questions/how-often-does-the-sba-require-lenders-to-report-on-7-a-loan-portfolio-performance-for-sec"},{"question":"Are there specific non-financial performance requirements for a franchise to be eligible for SBA 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-non-financial-performance-requirements-for-a-franchise-to-be-eligible-f"},{"question":"How does a lender apply 'prudent lending standards' when evaluating a borrower's historical financial performance trends for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-apply-prudent-lending-standards-when-evaluating-a-borrower-s-historical-"}]},"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 — Loan performance","url":"https://dealroom.so/glossary/loan-performance","source_type":"DealRoom Data"}}