Glossary · The loan itself
In short
This is when the SBA completely refuses to honor its guaranty to the lender, typically due to significant violations of program requirements by the lender. The lender is then solely responsible for the defaulted loan.
A Denial of Guaranty is a severe consequence for a lender, meaning the SBA will not pay out on its promise. This usually happens after a major servicing deficiency or origination error. As a borrower, understanding this reinforces the importance of working with a compliant lender and ensuring all your paperwork is accurate to avoid any issues that could lead to such a denial.
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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