{"ok":true,"canonical_url":"https://dealroom.so/glossary/private-lender","api_url":"https://dealroom.so/api/public/glossary/private-lender","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":"private-lender","term":"Private Lender","group":"People and paperwork","definition":"This refers to an individual or non-bank institution that provides loans, often with different criteria and terms than traditional banks. They can be a source of capital but come with their own set of considerations.","what_it_means":"While your primary acquisition financing will be from an SBA-approved lender, you might encounter private lenders if you need to bridge an equity gap or secure financing for aspects not covered by the 7(a) loan. Always scrutinize their terms, interest rates, and fees, as they can differ significantly from conventional or SBA loans. Ensure their involvement doesn't conflict with SBA rules.","url":"https://dealroom.so/glossary/private-lender","official_sources":[],"related":[{"slug":"conventional-loan","term":"Conventional loan","url":"https://dealroom.so/glossary/conventional-loan"},{"slug":"sba-express","term":"SBA Express","url":"https://dealroom.so/glossary/sba-express"},{"slug":"line-of-credit","term":"Line of credit","url":"https://dealroom.so/glossary/line-of-credit"},{"slug":"not-engaged-in-lending-rule","term":"Not engaged in lending rule","url":"https://dealroom.so/glossary/not-engaged-in-lending-rule"}],"related_questions":[{"question":"Can a bridge loan from a private lender count towards the buyer's required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-bridge-loan-from-a-private-lender-count-towards-the-buyer-s-required-equity-injectio"},{"question":"When does ownership by a private equity fund trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-ownership-by-a-private-equity-fund-trigger-affiliation-for-sba-size-standard-pur"},{"question":"Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-private-equity-firm-count-as-equity-injection-for-an-sba-7-a-loan"},{"question":"Under what conditions does ownership by a private equity fund trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-does-ownership-by-a-private-equity-fund-trigger-affiliation-for-sba-"},{"question":"Can a private investor provide a loan that counts as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-private-investor-provide-a-loan-that-counts-as-equity-injection-for-an-sba-7-a-loan"},{"question":"Can a subordinated loan from a private third-party investor count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-subordinated-loan-from-a-private-third-party-investor-count-as-equity-injection-for-"}]},"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 — Private Lender","url":"https://dealroom.so/glossary/private-lender","source_type":"DealRoom Data"}}