Glossary · The loan itself
In short
The formal steps a lender takes when a borrower fails to meet loan terms, like missing payments. Understanding this process is key to knowing your risks.
If you default on your SBA 7(a) loan, the lender follows a specific default procedure, first attempting to cure the default, then moving to liquidation and collateral seizure. This impacts your business and personal assets due to the personal guarantee.
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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