Glossary · Doing the deal
In short
The generally accepted principles and practices that a responsible lender follows to make sound credit decisions and protect their investment. The SBA requires lenders to follow these.
When a lender approves your 7(a) loan, they must show the SBA they applied prudent lending standards, meaning they did their due diligence and believed the loan would be repaid. If they fail, the SBA can reduce its guaranty. This protects the SBA, not the borrower.
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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