Glossary · The loan itself
In short
A loan is in "performing status" when the borrower is making all required principal and interest payments on time and according to the loan agreement. This is the desired state for any loan.
Maintaining "performing status" on your SBA 7(a) loan is crucial. This means consistently making your monthly payments by the due date. Falling out of performing status can trigger penalties, an increased "default rate" interest, and eventually lead to "loan default" and potential "liquidation" actions.
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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