Glossary · The loan itself
In short
When a borrower defaults on an SBA loan, the lender can "claim" a portion of the loss from the SBA. This is the SBA fulfilling its guaranty to the lender.
If you default and the lender can't recover their money through liquidation, they'll file a claim with the SBA. The SBA then pays the guaranteed percentage (usually 75%) to the lender. This doesn't relieve your personal guarantee obligations; the SBA will pursue you for the full amount.
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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