Glossary · Doing the deal
In short
This refers to the lender's responsibility to manage and collect on a loan in a commercially reasonable manner. The SBA requires lenders to follow these standards to ensure the loan is handled properly.
While it's mainly the lender's job, understanding prudent servicing assures you that your lender is obligated to follow established practices for managing your SBA loan. If you experience issues, knowing this standard helps you understand what to expect from your lender and the SBA's expectations for them.
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day