Glossary · Doing the deal
In short
A non-curable defect is a problem with the loan or the borrower that cannot be fixed, making the loan ineligible for an SBA guarantee. This issue means the deal cannot close with SBA financing.
If underwriting uncovers a non-curable defect, the SBA will not guarantee the loan, forcing the lender to either deny it or seek a conventional loan. You need to understand these deal-breakers early in due diligence to avoid wasting time and money.
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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