Glossary · Doing the deal
In short
This is the request a lender makes to the SBA to pay out on the SBA's guaranty when a loan defaults and cannot be fully recovered. It's the lender's recourse for a bad loan.
If your SBA loan defaults and the lender can't recover the full amount through liquidation, they'll submit a guaranty claim to the SBA for the guaranteed portion. The SBA then reviews the lender's actions to ensure prudent lending and servicing. For you, the buyer, understanding this process highlights the lender's motivation to avoid default and ensure strong underwriting.
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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