Glossary · The loan itself
In short
This means the business or borrower didn't meet SBA's rules when the loan was first approved. If discovered later, the SBA can deny its guaranty, leaving the lender and you on the hook.
Lenders have strict SBA eligibility criteria they must follow during underwriting. As a buyer, ensure your business plan, ownership structure, and personal history comply. Any misrepresentation or omission can void the SBA guaranty.
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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