Glossary · The loan itself
In short
This is when the SBA revokes its promise to reimburse the lender for a portion of your defaulted loan. It happens if the lender didn't follow SBA rules during origination or servicing.
As a borrower, you still owe the full amount of the loan if the SBA guaranty is cancelled; this issue impacts the lender, not you directly. However, if the lender's errors lead to cancellation, it can complicate loan servicing or liquidation. Your primary concern is ensuring your lender follows SBA rules to avoid any issues that could indirectly affect you.
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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