Glossary · People and paperwork
Certificate of Guaranty
In short
This is the official document issued by the SBA to the lender, formally evidencing the SBA's guarantee on a portion of your loan. It's proof of the SBA's backing.
What it means in a deal
Once your loan is approved and closed, the SBA issues this certificate to your lender. It's a critical document for the lender, as it confirms the SBA will cover a percentage of the loan if you default. You won't typically see it, but it underpins your lender's confidence.
Official sources
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.
Related terms
Common questions about Certificate of Guaranty
- Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?
- Can I use funds from a Certificate of Deposit (CD) that matures after closing for my equity injection?
- What is the purpose of the SBA's loan guaranty?
- What are the benefits of the SBA guaranty for the lender?
- What is the purpose of the SBA guaranty fee on my loan?
- What is the maximum percentage of an SBA 7(a) loan guaranty?
Defined by CapBench 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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