Glossary · The loan itself
Guaranty Repair
In short
When the SBA fixes a lender's mistake in the loan process, allowing the SBA guaranty to remain intact. This protects the lender's exposure and your loan's backing.
What it means in a deal
If a lender makes a minor error during loan origination or servicing, they can request a "guaranty repair" from the SBA. This is better than a full denial for the lender and ensures the SBA still backs your loan. You, the buyer, generally don't see this directly, but it's part of the lender's compliance process.
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 Guaranty Repair
- What constitutes a "repair" to the SBA guaranty during a purchase request?
- What common underwriting errors typically lead to an SBA 7(a) loan guaranty repair?
- What is the key impact of a 'repair' on an SBA guaranty purchase request?
- Can a lender appeal an SBA decision to repair or deny a guaranty purchase request?
- What specific actions or omissions by a lender in liquidation can lead to a guaranty repair?
- What specific lender errors typically result in a 'repair' of the 7(a) guaranty during liquidation?
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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