Glossary · The loan itself
In short
This is a loan where the borrower is making all scheduled principal and interest payments on time. As a buyer, your 7(a) loan is expected to be a performing loan from day one.
Lenders prefer to originate and hold performing loans, as they generate consistent revenue and carry lower risk. If you miss payments, your loan becomes non-performing, triggering penalties and potentially leading to default and liquidation. Maintain strong cash flow to ensure your loan performs.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day