Glossary · The loan itself
In short
This is a court order requiring a borrower or guarantor to pay the remaining debt after collateral has been sold and didn't cover the full loan amount. As a buyer, you care because it highlights the personal risk associated with your SBA loan.
If your business defaults on an SBA 7(a) loan and the lender liquidates all available collateral, but the proceeds don't cover the outstanding debt, the lender can pursue a deficiency judgment against you and any other guarantors. This judgment allows the lender to collect the remaining balance from your personal assets, underscoring the importance of your personal guarantee.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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