{"ok":true,"canonical_url":"https://dealroom.so/glossary/loss-exposure","api_url":"https://dealroom.so/api/public/glossary/loss-exposure","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":"loss-exposure","term":"Loss exposure","group":"The loan itself","definition":"The potential financial risk or maximum amount of loss a lender faces if a borrower defaults. The SBA evaluates this for every loan.","what_it_means":"The SBA assesses the lender's loss exposure when guaranteeing a loan. For buyers, this primarily relates to collateral and personal guarantees. A higher loss exposure for the lender might lead to stricter collateral requirements or a stronger personal guarantee from you.","url":"https://dealroom.so/glossary/loss-exposure","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":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"What steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-steps-must-a-lender-take-to-mitigate-loss-during-loan-liquidation-before-submitting-a"},{"question":"What are the specific requirements for naming the lender as the loss payee on a life insurance policy collateral assignment?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-naming-the-lender-as-the-loss-payee-on-a-life-insur"},{"question":"What specific steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-specific-steps-must-a-lender-take-to-mitigate-loss-during-loan-liquidation-before-sub"}]},"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 — Loss exposure","url":"https://dealroom.so/glossary/loss-exposure","source_type":"DealRoom Data"}}