Glossary · Reading the business
In short
Being behind on payments or having defaulted on a loan or debt owed to the U.S. government. This can include prior SBA loans, student loans, or tax debts.
A federal debt delinquency for you or any key principal is a major red flag and makes you ineligible for an SBA loan. Lenders check the CAIVRS database. You must resolve any such delinquencies before your loan can be approved.
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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