{"ok":true,"canonical_url":"https://dealroom.so/glossary/non-payment-clause","api_url":"https://dealroom.so/api/public/glossary/non-payment-clause","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":"non-payment-clause","term":"Non-Payment Clause","group":"The loan itself","definition":"A section in your loan agreement specifying what happens if you miss a payment. This details the lender's rights, which can include declaring the loan in default.","what_it_means":"Understand your loan agreement's non-payment terms. Missing payments can trigger a loan default, accelerating the entire loan balance and potentially leading to collection actions. If you foresee payment issues, communicate immediately with your lender.","url":"https://dealroom.so/glossary/non-payment-clause","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":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"payment-deferment","term":"Payment Deferment","url":"https://dealroom.so/glossary/payment-deferment"}],"related_questions":[{"question":"Can I use gifted funds from a non-relative for my down payment?","url":"https://dealroom.so/sba-7a/questions/can-i-use-gifted-funds-from-a-non-relative-for-my-down-payment"},{"question":"Can gift funds from a non-family investor count towards my down payment?","url":"https://dealroom.so/sba-7a/questions/can-gift-funds-from-a-non-family-investor-count-towards-my-down-payment"},{"question":"For a partner buyout, what if the departing partner also has a non-compete payment?","url":"https://dealroom.so/sba-7a/questions/for-a-partner-buyout-what-if-the-departing-partner-also-has-a-non-compete-payment"},{"question":"What if a proposed franchise agreement includes a clause restricting the borrower's operational control or management?","url":"https://dealroom.so/for-lenders/questions/what-if-a-proposed-franchise-agreement-includes-a-clause-restricting-the-borrower-s-operat"},{"question":"Can I use non-cash assets like vehicles or equipment as part of my down payment?","url":"https://dealroom.so/sba-loans/basics/can-i-use-non-cash-assets-like-vehicles-or-equipment-as-part-of-my-down-payment"},{"question":"Can gift funds from a non-U.S. relative count towards my SBA 7(a) down payment?","url":"https://dealroom.so/sba-loans/basics/can-gift-funds-from-a-non-u-s-relative-count-towards-my-sba-7-a-down-payment"}]},"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 — Non-Payment Clause","url":"https://dealroom.so/glossary/non-payment-clause","source_type":"DealRoom Data"}}