Glossary · The loan itself
In short
A serious failure to meet loan terms, like missing payments. For a buyer, this means the SBA loan could be called, risking your business and personal assets.
If you miss too many payments or violate key loan covenants, your lender can declare a Material Default. This triggers the SBA guaranty and the lender will pursue all available collateral, including your personal guarantee. Understand your loan agreement's default clauses thoroughly.
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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