Glossary · The loan itself
In short
A failure to meet the terms of your loan agreement, such as missing payments or violating covenants. This triggers the lender's right to take action, potentially demanding full repayment.
If you trigger an Event of Default on your SBA 7(a) loan, the lender can declare the entire loan due immediately. This can lead to the "Acceleration of Debt" and liquidation of collateral. Understand all loan covenants, not just payment terms, to avoid this serious situation.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day