Glossary · The loan itself
In short
Failing to repay any debt owed to the U.S. government, including past student loans, tax obligations, or prior SBA loans. This makes you ineligible for a new SBA loan.
The SBA will check if you or any key principal has defaulted on federal debt. This is a red flag and an absolute disqualifier for a 7(a) loan. Resolve any outstanding federal debt before applying, as it will surface during the underwriting process.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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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