Glossary · The loan itself
Claim on the SBA Guarantee
In short
What happens when a borrower defaults on an SBA loan and the lender asks the SBA to honor its guarantee and pay the guaranteed portion. Buyer cares because this is the ultimate consequence of a defaulted SBA loan from the lender's perspective.
What it means in a deal
If you default on your SBA loan, the lender first attempts to collect from you and liquidate collateral. If these efforts fail, the lender then makes a "Claim on the SBA Guarantee." While this pays the lender, it doesn't absolve you of your personal guarantee; the SBA will then pursue you for the outstanding debt.
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 Claim on the SBA Guarantee
- Does being listed on the SBA Franchise Directory guarantee SBA loan approval?
- How long does the SBA guarantee last on a 7(a) loan?
- What is the maximum amount the SBA will guarantee on a 7(a) loan?
- What is the maximum percentage the SBA will guarantee on a 7(a) loan?
- Why do I still need to personally guarantee an SBA 7(a) loan if the SBA also guarantees it?
- What is the meaning of a 'personal guarantee' on an SBA 7(a) loan?
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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