Glossary · The loan itself
In short
This is the portion of an SBA 7(a) loan that the SBA guarantees to the lender, typically 75-90%. It reduces the lender's risk, making them more willing to lend.
The SBA doesn't lend directly; it guarantees a portion of the loan made by a bank. This guaranteed balance protects the lender if you default. You, as the borrower, are still 100% responsible for repaying the entire loan amount, not just the unguaranteed portion.
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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