Glossary · Doing the deal
In short
Legal processes to resolve financial insolvency, either by liquidating assets to pay creditors or by reorganizing debt. Prior bankruptcies can impact loan eligibility.
A past bankruptcy can make securing a 7(a) loan challenging, especially if it's recent or involved fraud. Lenders will examine the discharge details and your post-bankruptcy financial history to assess your current creditworthiness and character. Be prepared to explain the circumstances thoroughly.
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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