{"ok":true,"canonical_url":"https://dealroom.so/glossary/participating-bank","api_url":"https://dealroom.so/api/public/glossary/participating-bank","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":"participating-bank","term":"Participating bank","group":"People and paperwork","definition":"This is a bank that offers SBA-guaranteed loans. They originate and service the loan, with the SBA providing a partial guaranty to reduce the bank's risk.","what_it_means":"When you apply for a 7(a) loan, you'll work with a Participating bank, not directly with the SBA. These banks have varying levels of experience and delegated authority, so finding the right one can streamline your deal. Look for Preferred Lenders (PLP lender).","url":"https://dealroom.so/glossary/participating-bank","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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"plp-lender","term":"PLP lender","url":"https://dealroom.so/glossary/plp-lender"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"},{"slug":"origination","term":"Origination","url":"https://dealroom.so/glossary/origination"}],"related_questions":[{"question":"Does the SBA 7(a) loan program require me to use a specific bank or can I choose any bank?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-loan-program-require-me-to-use-a-specific-bank-or-can-i-choose-any-bank"},{"question":"Can prior bankruptcies or foreclosures impact my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/can-prior-bankruptcies-or-foreclosures-impact-my-sba-7-a-loan-eligibility"},{"question":"Can cash in the business bank account count as collateral?","url":"https://dealroom.so/sba-loans/basics/can-cash-in-the-business-bank-account-count-as-collateral"},{"question":"What does 'Preferred Lender Program' (PLP) status mean for a bank?","url":"https://dealroom.so/sba-loans/basics/what-does-preferred-lender-program-plp-status-mean-for-a-bank"},{"question":"Does the SBA approve my loan application, or does the bank?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-approve-my-loan-application-or-does-the-bank"},{"question":"If my business defaults, does the SBA pay the bank directly?","url":"https://dealroom.so/sba-loans/basics/if-my-business-defaults-does-the-sba-pay-the-bank-directly"}]},"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 — Participating bank","url":"https://dealroom.so/glossary/participating-bank","source_type":"DealRoom Data"}}