{"ok":true,"canonical_url":"https://dealroom.so/glossary/repair-of-the-guarantee","api_url":"https://dealroom.so/api/public/glossary/repair-of-the-guarantee","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"repair-of-the-guarantee","term":"Repair of the guarantee","group":"The loan itself","definition":"This is when the SBA reduces or denies its guaranty to a lender due to lender errors, non-compliance, or fraud. It's critical for buyers because a lender facing a repair might be less flexible or pursue more aggressive collection if you default.","what_it_means":"The SBA expects lenders to follow specific procedures outlined in SOP 50 10. If the lender fails to adhere to these rules, the SBA can \"repair\" (reduce) or even \"deny\" (cancel) its guaranty. While this primarily affects the lender, it signals potential issues with loan origination that buyers should be aware of.","url":"https://dealroom.so/glossary/repair-of-the-guarantee","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":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"sop-50-10","term":"SOP 50 10","url":"https://dealroom.so/glossary/sop-50-10"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"servicing-deficiency","term":"Servicing deficiency","url":"https://dealroom.so/glossary/servicing-deficiency"}],"related_questions":[{"question":"What is the key impact of a 'repair' on an SBA guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-is-the-key-impact-of-a-repair-on-an-sba-guaranty-purchase-request"},{"question":"Why do I still need to personally guarantee an SBA 7(a) loan if the SBA also guarantees it?","url":"https://dealroom.so/sba-loans/basics/why-do-i-still-need-to-personally-guarantee-an-sba-7-a-loan-if-the-sba-also-guarantees-it"},{"question":"What specific lender errors typically result in a 'repair' of the 7(a) guaranty during liquidation?","url":"https://dealroom.so/for-lenders/questions/what-specific-lender-errors-typically-result-in-a-repair-of-the-7-a-guaranty-during-liquid"},{"question":"What specific lender actions or omissions can lead to a repair of the SBA guaranty, short of a full denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-lender-actions-or-omissions-can-lead-to-a-repair-of-the-sba-guaranty-short-o"},{"question":"What percentage of the loan does the SBA actually guarantee to the bank?","url":"https://dealroom.so/sba-loans/basics/what-percentage-of-the-loan-does-the-sba-actually-guarantee-to-the-bank"},{"question":"What is the key impact of a 'repair' on an SBA guaranty purchase request for a defaulted loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-key-impact-of-a-repair-on-an-sba-guaranty-purchase-request-for-a-defaulted-loa"}]},"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 — Repair of the guarantee","url":"https://dealroom.so/glossary/repair-of-the-guarantee","source_type":"DealRoom Data"}}