{"ok":true,"canonical_url":"https://dealroom.so/glossary/performing-loan","api_url":"https://dealroom.so/api/public/glossary/performing-loan","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":"performing-loan","term":"Performing loan","group":"The loan itself","definition":"This is a loan where the borrower is making all scheduled principal and interest payments on time. As a buyer, your 7(a) loan is expected to be a performing loan from day one.","what_it_means":"Lenders prefer to originate and hold performing loans, as they generate consistent revenue and carry lower risk. If you miss payments, your loan becomes non-performing, triggering penalties and potentially leading to default and liquidation. Maintain strong cash flow to ensure your loan performs.","url":"https://dealroom.so/glossary/performing-loan","official_sources":[],"related":[{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"principal-and-interest","term":"Principal and interest","url":"https://dealroom.so/glossary/principal-and-interest"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"question":"Are SBA 7(a) loans only for businesses unable to get traditional bank loans?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-businesses-unable-to-get-traditional-bank-loans"},{"question":"What exactly is an SBA 7(a) loan, and who offers these loans?","url":"https://dealroom.so/sba-loans/basics/what-exactly-is-an-sba-7-a-loan-and-who-offers-these-loans"},{"question":"How do SBA 7(a) loan interest rates compare to standard commercial loans?","url":"https://dealroom.so/sba-loans/basics/how-do-sba-7-a-loan-interest-rates-compare-to-standard-commercial-loans"},{"question":"What makes an SBA 7(a) loan 'government-backed' compared to other loans?","url":"https://dealroom.so/sba-loans/basics/what-makes-an-sba-7-a-loan-government-backed-compared-to-other-loans"},{"question":"Does the SBA check for past defaults on federal debts, like student loans or prior SBA loans?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-check-for-past-defaults-on-federal-debts-like-student-loans-or-prior-sba-loan"},{"question":"How do SBA loan guaranty fees for FY2026 apply to loans below $500,000?","url":"https://dealroom.so/for-lenders/questions/how-do-sba-loan-guaranty-fees-for-fy2026-apply-to-loans-below-500-000"}]},"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 — Performing loan","url":"https://dealroom.so/glossary/performing-loan","source_type":"DealRoom Data"}}