Glossary · The loan itself
In short
When a borrower fails to meet the terms of their loan agreement, like missing payments. A default can lead to serious consequences, including losing the business or personal assets.
If your business struggles post-acquisition and you can't pay your SBA loan, you're in default. Lenders will first try to work with you, but if the situation isn't resolved, they'll move to liquidate collateral or pursue personal guarantees. Understand your cash flow and repayment capacity thoroughly before closing.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day