Glossary · People and paperwork
In short
This refers to any prior instances where you or a key principal failed to repay a loan or meet other debt obligations. Lenders review this as part of your creditworthiness.
If you have a history of defaulting on federal debt, particularly previous SBA loans, it will severely impact your eligibility for a new 7(a) loan. Lenders will pull your credit report and review all key principals' financial history. Be transparent about any past issues.
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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