Glossary · The loan itself
In short
This refers to the SBA's promise to reimburse a lender for a specific percentage of a defaulted loan, up to the maximum allowable amount. It's never 100%, despite the name.
The SBA provides a "full" guaranty for a percentage of the loan (e.g., 75% or 85%), meaning they cover that portion for the lender if you default, provided the lender followed all rules. This reduces the lender's risk, making them more willing to lend, but you are still personally responsible for the entire loan amount.
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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