Glossary · The loan itself
In short
When a lender requests the SBA to buy back the guaranteed portion of a defaulted loan. This happens when the lender has exhausted all recovery efforts.
If your SBA 7(a) loan defaults and the lender can't recover enough through liquidation, they'll submit a guaranty purchase request to the SBA. This triggers the SBA to pay the lender for its guaranteed percentage, but doesn't relieve you of your debt. The SBA then pursues recovery directly from you.
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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