Glossary · The loan itself
In short
This refers to how the risk of a loan default is divided between the lender and the SBA. The SBA doesn't guarantee 100% of your loan.
With an SBA 7(a) loan, the SBA guarantees a portion of the loan, typically 75% or 85%, meaning the lender still carries some risk. This shared risk encourages lenders to underwrite prudently while still making capital available to small businesses. It's why lenders still scrutinize your application carefully.
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