Glossary · The loan itself
In short
The portion of an SBA loan that the SBA promises to repay the lender if you default. This guarantee reduces risk for lenders, making loans more accessible for small businesses.
The SBA does not lend money directly but guarantees a percentage of the loan made by a financial institution. For 7(a) loans, the guaranteed amount is typically 75% for loans over $150,000 and 85% for loans up to $150,000. This guarantee is what makes lenders willing to provide acquisition financing.
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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