Glossary · The loan itself
In short
Failing to repay any debt owed to the U.S. government, including prior SBA loans, student loans, or taxes. This makes you ineligible for a new SBA loan.
Lenders check for prior government debt defaults as part of your eligibility. If you or any key principal has defaulted on government debt, you must resolve it before applying for an SBA 7(a) loan. This is a hard stop for eligibility.
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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