{"ok":true,"canonical_url":"https://dealroom.so/glossary/repair-or-denial-of-the-sba-guaranty","api_url":"https://dealroom.so/api/public/glossary/repair-or-denial-of-the-sba-guaranty","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-or-denial-of-the-sba-guaranty","term":"Repair or denial of the SBA guaranty","aka":"Call of the guaranty","group":"The loan itself","definition":"This occurs if your lender makes a mistake or violates SBA rules, causing the SBA to reduce or refuse to pay its guaranty to the lender if you default. This is a lender-side risk, but it affects you indirectly.","what_it_means":"While primarily a risk for the lender, a repair or denial of the guaranty means the lender has less protection if you default. This can make them more cautious, potentially impacting loan terms or servicing if a problem arises. You need to ensure your lender is an experienced PLP lender and follows all SBA rules to minimize this risk, as it reflects on the quality of your loan process.","url":"https://dealroom.so/glossary/repair-or-denial-of-the-sba-guaranty","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":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"},{"slug":"plp-lender","term":"PLP lender","url":"https://dealroom.so/glossary/plp-lender"}],"related_questions":[{"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":"How does inadequate collateral documentation by a lender lead to a repair or denial of the SBA 7(a) guaranty?","url":"https://dealroom.so/for-lenders/questions/how-does-inadequate-collateral-documentation-by-a-lender-lead-to-a-repair-or-denial-of-the"},{"question":"What E-Tran submission errors most commonly lead to SBA 7(a) guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/what-e-tran-submission-errors-most-commonly-lead-to-sba-7-a-guaranty-repair-or-denial"},{"question":"What is the specific timeline for a lender to submit a response to an SBA initial notification of guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-timeline-for-a-lender-to-submit-a-response-to-an-sba-initial-notifica"},{"question":"What specific actions by a lender during the liquidation process can lead to a repair or denial of the 7(a) guaranty?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-by-a-lender-during-the-liquidation-process-can-lead-to-a-repair-or-d"},{"question":"What are the common reasons for the SBA to deny a guaranty purchase request, resulting in a 'repair' or 'denial'?","url":"https://dealroom.so/for-lenders/questions/what-are-the-common-reasons-for-the-sba-to-deny-a-guaranty-purchase-request-resulting-in-a"}]},"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 or denial of the SBA guaranty","url":"https://dealroom.so/glossary/repair-or-denial-of-the-sba-guaranty","source_type":"DealRoom Data"}}