Glossary · The loan itself
In short
This occurs when the SBA reduces the amount it pays a lender on a defaulted loan due to a lender's error. For you, it means your lender might become more aggressive in collecting from you.
If the SBA finds the lender didn't follow rules (e.g., imprudent lending, unauthorized servicing), they'll "repair" or reduce their guaranty payment. This doesn't reduce your obligation to repay the loan, but it motivates the lender to pursue all available avenues, including your personal guarantee, more vigorously.
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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