{"ok":true,"canonical_url":"https://dealroom.so/glossary/technical-default","api_url":"https://dealroom.so/api/public/glossary/technical-default","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":"technical-default","term":"Technical default","group":"The loan itself","definition":"This occurs when a borrower violates a non-payment term or condition of their loan agreement, even if all payments are current. You care because a technical default can trigger lender action, including accelerating the loan, if not remedied.","what_it_means":"Examples include failing to maintain required insurance, not providing financial statements when due, or making a significant change in business ownership without lender consent. Understand all covenants in your loan agreement to avoid unintentional breaches.","url":"https://dealroom.so/glossary/technical-default","official_sources":[],"related":[{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"compliance","term":"Compliance","url":"https://dealroom.so/glossary/compliance"}],"related_questions":[{"question":"What happens if I default on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-i-default-on-an-sba-7-a-loan"},{"question":"How does a lender request an SBA guaranty purchase after loan default?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-sba-guaranty-purchase-after-loan-default"},{"question":"What constitutes 'prudent liquidation' for a 7(a) loan to protect the SBA guaranty during default?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-liquidation-for-a-7-a-loan-to-protect-the-sba-guaranty-during-def"},{"question":"What are a lender's primary responsibilities once a 7(a) loan enters liquidation after default?","url":"https://dealroom.so/for-lenders/questions/what-are-a-lender-s-primary-responsibilities-once-a-7-a-loan-enters-liquidation-after-defa"},{"question":"Will a past federal student loan default, now rehabilitated, affect my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-a-past-federal-student-loan-default-now-rehabilitated-affect-my-sba-7-a-loan-approval"},{"question":"What are the specific consequences if I default on my personal guaranty for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-specific-consequences-if-i-default-on-my-personal-guaranty-for-an-sba-loan"}]},"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 — Technical default","url":"https://dealroom.so/glossary/technical-default","source_type":"DealRoom Data"}}