Glossary · The loan itself
In short
The SBA's commitment to reimburse a lender for a portion of the loan if the borrower defaults. This reduces risk for lenders, making them more willing to lend to small businesses.
The SBA doesn't lend directly for most 7(a) loans; it guarantees a portion of the loan made by a private lender. This guarantee is why lenders offer more favorable terms, like longer repayment periods, for business acquisitions. Understand that you, the borrower, are still fully responsible for the entire debt.
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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