Glossary · The loan itself
In short
A program where the SBA guarantees a portion of a loan made by a commercial lender, reducing the lender's risk. This encourages banks to lend to small businesses they might otherwise deem too risky.
The SBA 7(a) is a guaranteed loan program, meaning the SBA promises to repay a percentage of your loan to the lender if you default. This guarantee makes it possible for many small business acquisitions to get funded, but it doesn't remove your personal guarantee or responsibility to repay.
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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