Glossary · The loan itself
In short
A type of bond or debt instrument issued by an SBA-approved lender, backed by the SBA's guarantee, and sold in the secondary market.
When a lender makes an SBA 7(a) loan, they often sell the SBA-guaranteed portion of that loan on the secondary market to investors. This debenture represents the guaranteed portion, allowing lenders to free up capital for more loans. As a borrower, you primarily deal with the originating lender, not the debenture itself.
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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