{"ok":true,"canonical_url":"https://dealroom.so/glossary/subrogation","api_url":"https://dealroom.so/api/public/glossary/subrogation","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":"subrogation","term":"Subrogation","group":"The loan itself","definition":"This is the legal right of the SBA, after paying a lender on a defaulted loan, to step into the lender's shoes and collect from the borrower or guarantors. It means you still owe the SBA directly.","what_it_means":"If your 7(a) loan defaults and the SBA pays the lender's guaranty claim, the SBA then has the right of Subrogation. This means they will pursue collection directly from you, your personal guarantee, and any pledged collateral. Don't think defaulting means you're off the hook.","url":"https://dealroom.so/glossary/subrogation","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":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"liquidation-plan","term":"Liquidation Plan","url":"https://dealroom.so/glossary/liquidation-plan"}],"related_questions":[]},"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 — Subrogation","url":"https://dealroom.so/glossary/subrogation","source_type":"DealRoom Data"}}