Glossary · The loan itself
In short
This is the portion of a defaulted SBA loan that the SBA guarantees to pay the lender. It's usually 75-90% for a 7(a) loan, limiting the lender's risk.
The guaranty percentage impacts the lender's willingness to make the loan and their level of diligence. While it reduces the lender's risk, it doesn't reduce your obligation to repay the entire loan. You are always 100% responsible.
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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