Glossary · The loan itself
In short
The percentage of an SBA 7(a) loan that is not covered by the SBA guaranty. The lender bears 100% of the risk for this part if the borrower defaults.
The SBA guarantees a percentage of the loan (e.g., 75% or 85%), but the lender is fully exposed to the risk of the remaining "unguaranteed" portion. This means the lender has a strong incentive to underwrite carefully and pursue collections diligently in case of default.
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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