Glossary · The loan itself
In short
The standard loan underwriting and approval criteria used by banks for loans not backed by government guarantees. SBA loans often bridge gaps where conventional financing isn't available.
The SBA requires lenders to follow prudent conventional lending practices even for guaranteed loans. This means the loan must be structured soundly, with proper collateral and repayment analysis, even if the SBA provides a guaranty. The "credit elsewhere test" ensures you can't get a conventional loan first.
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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