Glossary · The loan itself
In short
When the SBA refuses to honor its guaranty to a lender, typically because the lender failed to follow SBA rules during origination or servicing.
A disallowance means the lender takes a loss on the guaranteed portion of the loan. While it doesn't directly impact your obligation to repay the loan, it underscores the importance of working with an experienced lender who adheres strictly to SBA regulations to ensure the loan is properly structured and eligible.
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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