Glossary · The loan itself
Outstanding guaranteed balance
In short
The portion of your SBA loan that the SBA has promised to repay to your lender if you default. This amount decreases as you pay down your loan.
What it means in a deal
The SBA doesn't guarantee the entire loan amount, but a percentage (typically 75-85%). The annual oversight fee is calculated on this outstanding guaranteed balance. As your principal balance amortizes, this guaranteed portion also declines, reducing your annual fee over time.
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 Outstanding guaranteed balance
- What is the maximum total outstanding balance for all SBA 7(a) loans to one business?
- What is the prepayment penalty calculation for a 7(a) loan with a principal balance exceeding $500,000?
- Can a personal guaranty be released if the business performs exceptionally well and the loan balance is significantly reduced?
- Is there a prepayment penalty for early repayment of my SBA 7(a) loan if the principal balance is under $500,000?
- What are the lender requirements for pooling and selling the guaranteed portion?
- If I significantly reduce the principal balance of my SBA 7(a) loan within the first three years, will a prepayment penalty apply?
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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