Glossary · The loan itself
In short
A clause in your loan agreement that allows the lender to demand immediate repayment of the entire outstanding loan balance if you default. It's a severe consequence of failing to meet loan terms.
If an Event of Default occurs, the lender will likely activate the acceleration clause, requiring you to pay back the entire SBA loan immediately. This often leads to liquidation of assets pledged as Collateral and can trigger your Personal guarantee. Avoid default at all costs.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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