Glossary · The loan itself
In short
This means a borrower has failed to make loan payments for an extended period, typically 90 days or more. It's a red flag for lenders and will likely disqualify you for an SBA loan if it's on your personal credit.
Lenders review your personal credit history for any severe delinquencies, as this directly impacts your creditworthiness and repayment capacity. Any history of severe delinquency, especially on prior federal debt, will be a major barrier to getting approved for an SBA 7(a) loan. Address any such issues proactively with your lender.
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.
Free · No documents · Usually same-day