Glossary · The loan itself
Delinquency
In short
This is when a borrower misses a loan payment. For a buyer, understanding the seller's past delinquencies on business debts is crucial, as it indicates repayment capacity and financial health.
What it means in a deal
If the business you're buying has a history of loan delinquencies, it's a red flag. Lenders will scrutinize this during underwriting to assess the business's ability to service new debt, impacting your approval odds. You need to understand why these occurred and if the underlying issues have been resolved.
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 Delinquency
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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