Glossary · The loan itself
In short
The SBA's promise to cover 75–85% of the bank's loss if you default. It protects the bank. You still owe the full loan.
The SBA guaranty is what makes the whole program work: the bank takes the credit risk on paper, but the government absorbs most of the downside if you can't pay. The guaranty percentage is 85% on loans up to $150K and 75% above that. As a buyer this means the bank is underwriting you knowing they're partially insured — but a default still triggers the SBA's recovery process against you, your business assets, and your personal guarantee, so the protection runs one direction.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
Last checked 2026-06-14. 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 2026-06-14 · 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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