Glossary · The loan itself
In short
This occurs when a borrower violates a non-payment term or condition of their loan agreement, even if all payments are current. You care because a technical default can trigger lender action, including accelerating the loan, if not remedied.
Examples include failing to maintain required insurance, not providing financial statements when due, or making a significant change in business ownership without lender consent. Understand all covenants in your loan agreement to avoid unintentional breaches.
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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