Glossary · The loan itself
In short
The principle that lenders must make sound, responsible lending decisions, ensuring loans are likely to be repaid. The SBA expects its lenders to follow this standard.
The SBA requires all 7(a) lenders to adhere to prudent lending standards, meaning they must verify your ability to repay the loan and secure it with appropriate collateral. This protects the taxpayer and ensures the loan is viable for you.
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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