Glossary · The loan itself
In short
This occurs when a borrower fails to meet the terms of their loan agreement, most commonly by missing payments. It can trigger serious consequences, including foreclosure or liquidation.
If you default on your SBA loan, the lender will first try to work with you, but ultimately they can call the loan due and begin collection efforts, including seizing collateral and enforcing personal guarantees. Understand your loan agreement's default clauses and repayment schedule to avoid this.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day