Glossary · Doing the deal
In short
A clause in your loan agreement that allows the lender to demand immediate repayment of the entire outstanding loan balance if you default on certain terms. This is a severe consequence of non-compliance.
If you trigger a default clause in your SBA loan agreement – for example, by failing to make payments or violating a covenant – the lender can accelerate the debt. This means the full loan amount becomes due immediately. Review all loan covenants carefully to avoid situations that could lead to debt acceleration.
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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