{"ok":true,"canonical_url":"https://dealroom.so/glossary/repair-to-the-guaranty","api_url":"https://dealroom.so/api/public/glossary/repair-to-the-guaranty","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":"repair-to-the-guaranty","term":"Repair to the guaranty","group":"The loan itself","definition":"This occurs when the SBA reduces the amount it pays a lender on a defaulted loan due to a lender's error. For you, it means your lender might become more aggressive in collecting from you.","what_it_means":"If the SBA finds the lender didn't follow rules (e.g., imprudent lending, unauthorized servicing), they'll \"repair\" or reduce their guaranty payment. This doesn't reduce your obligation to repay the loan, but it motivates the lender to pursue all available avenues, including your personal guarantee, more vigorously.","url":"https://dealroom.so/glossary/repair-to-the-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":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"imprudent-lending-practices","term":"Imprudent lending practices","url":"https://dealroom.so/glossary/imprudent-lending-practices"},{"slug":"unauthorized-servicing-actions","term":"Unauthorized servicing actions","url":"https://dealroom.so/glossary/unauthorized-servicing-actions"}],"related_questions":[{"question":"What constitutes a \"repair\" to the SBA guaranty during a purchase request?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-repair-to-the-sba-guaranty-during-a-purchase-request"},{"question":"What common underwriting errors typically lead to an SBA 7(a) loan guaranty repair?","url":"https://dealroom.so/for-lenders/questions/what-common-underwriting-errors-typically-lead-to-an-sba-7-a-loan-guaranty-repair"},{"question":"What constitutes a 'failure to adhere to prudent lending standards' that could lead to a guaranty repair?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-failure-to-adhere-to-prudent-lending-standards-that-could-lead-to-a-gua"},{"question":"How does a lender ensure the loan authorization precisely matches final closing documents to avoid guaranty repair?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-the-loan-authorization-precisely-matches-final-closing-documents-"},{"question":"Can a lender appeal an SBA decision to repair or deny a guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-appeal-an-sba-decision-to-repair-or-deny-a-guaranty-purchase-request"},{"question":"What is the process for a lender to appeal an SBA decision to repair or deny a 7(a) loan guaranty?","url":"https://dealroom.so/for-lenders/questions/what-is-the-process-for-a-lender-to-appeal-an-sba-decision-to-repair-or-deny-a-7-a-loan-gu"}]},"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 to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty","source_type":"DealRoom Data"}}