Glossary · The loan itself
In short
This refers to the lender's obligation to minimize losses when a defaulted SBA loan is collected. They must show they acted responsibly to recover as much as possible from collateral and guarantors.
If your business defaults, the SBA expects the lender to follow specific steps to liquidate assets and pursue guaranties efficiently. As a buyer, understand that your personal guarantee is a primary target, and the lender cannot simply walk away from recovering what's owed.
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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