Glossary · Doing the deal
Cure the Default
In short
To remedy a loan default by fulfilling the missed obligations, typically by making overdue payments or correcting a breach of loan terms. This prevents further lender action.
What it means in a deal
If your business loan enters default, your lender will provide notice and an opportunity to "cure" it. This means bringing the loan current or fixing the non-monetary breach. Act quickly and communicate with your lender to avoid acceleration or liquidation.
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 Cure the Default
- Can a lender cure an eligibility defect discovered post-closing to avoid a guaranty repair or denial?
- What happens if I default on an SBA 7(a) loan?
- What constitutes 'prudent liquidation' for a 7(a) loan to protect the SBA guaranty during default?
- What are the specific consequences if I default on my personal guaranty for an SBA loan?
- How does a lender request an SBA guaranty purchase after loan default?
- What is the specific timeframe for a lender to notify the SBA of a 7(a) loan default?
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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