Glossary · Doing the deal
In short
These are the standard, prudent lending decisions and processes a bank follows to ensure a loan is creditworthy and protect its investment. The SBA requires lenders to follow these for 7(a) loans.
The SBA doesn't guarantee every loan; it guarantees against specific losses due to borrower default, provided the lender followed its rules and sound commercial lending practices. This means your lender will scrutinize your deal as they would any conventional loan, looking at the 5 Cs of credit.
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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