Glossary · Doing the deal
In short
Standardized, responsible lending behaviors that minimize risk for the lender and align with industry norms. SBA lenders must adhere to these practices, even with the government guarantee.
Although the SBA guarantees a portion of the loan, lenders still apply prudent lending practices to ensure the loan is sound. This means they will thoroughly underwrite the deal, assessing your creditworthiness and the business's ability to repay. Don't expect a lender to overlook significant risks just because it's an SBA loan.
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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