Glossary · The loan itself
In short
A loan made by a commercial lender, partially guaranteed by the Small Business Administration. This reduces risk for the lender, making financing more accessible for small businesses.
This is what you're applying for: a 7(a) loan. The SBA's guaranty means they'll cover a portion of the loan if you default, incentivizing banks to lend to small businesses that might not qualify for conventional loans. You still repay the bank directly, not the SBA.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
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