Glossary · The loan itself
Delinquent loan
In short
A loan where payments are past due, but not yet in default. A history of delinquent loans on your credit report will severely impact your ability to get an SBA loan.
What it means in a deal
Lenders check your personal and business credit report for any delinquent loans. Even minor delinquencies can be a red flag, signaling poor financial management. Address any derogatory marks before applying; explain them if they appear unavoidable.
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 Delinquent loan
- Can a business owner with delinquent federal debt still be eligible for a 7(a) loan?
- What is the impact if a 7(a) loan borrower becomes delinquent on their federal taxes after loan closing?
- What steps must a lender take if a 7(a) loan becomes delinquent due to the borrower's federal tax liens?
- Are SBA 7(a) loans only for businesses unable to get traditional bank loans?
- What exactly is an SBA 7(a) loan, and who offers these loans?
- How do SBA 7(a) loan interest rates compare to standard commercial loans?
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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