Glossary · People and paperwork
In short
This federal law dictates how payments from government contracts can be assigned to a third party, like a lender. It's critical for securing your SBA loan if government receivables are part of the collateral.
If the business has government contracts, your lender will need to comply with FACA to take a security interest in those receivables. This means formal notification to the government contracting and disbursing officers. Without proper assignment, those receivables can't serve as collateral for your SBA loan.
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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