Glossary · The loan itself
In short
The portion of your SBA loan that the SBA has promised to repay to your lender if you default. This amount decreases as you pay down your loan.
The SBA doesn't guarantee the entire loan amount, but a percentage (typically 75-85%). The annual oversight fee is calculated on this outstanding guaranteed balance. As your principal balance amortizes, this guaranteed portion also declines, reducing your annual fee over time.
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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