Glossary · The loan itself
Government-guaranteed
In short
An SBA 7(a) loan is partly guaranteed by the U.S. government, reducing risk for the lender. This guarantee makes it easier for small businesses to get loans they might not otherwise qualify for.
What it means in a deal
The SBA guarantees a percentage of the loan principal to the lender, typically 75% for larger loans and 85% for smaller ones. This doesn't mean the government pays if you default; it protects the lender. You are still personally responsible for repayment via a Personal guarantee.
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 Government-guaranteed
- What are the lender requirements for pooling and selling the guaranteed portion?
- Is an SBA 7(a) loan directly from the government?
- What is the government's role in an SBA 7(a) loan?
- Does the government directly lend money for an SBA 7(a) loan?
- What does the government 'guaranty' mean for an SBA 7(a) loan?
- Is an SBA 7(a) loan actually lent directly by the government?
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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