Glossary · The loan itself
Performing status
In short
A loan is in "performing status" when the borrower is making all required principal and interest payments on time and according to the loan agreement. This is the desired state for any loan.
What it means in a deal
Maintaining "performing status" on your SBA 7(a) loan is crucial. This means consistently making your monthly payments by the due date. Falling out of performing status can trigger penalties, an increased "default rate" interest, and eventually lead to "loan default" and potential "liquidation" actions.
Official sources
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 Performing status
- What does 'Preferred Lender Program' (PLP) status mean for a bank?
- What documentation proves U.S. citizenship or Qualified Alien status for owners?
- How is a lender's 'SBA Preferred Lender' status beneficial for the borrower?
- What are the rules if a seller note is not on full standby status?
- What is the status of the SBSS score requirement for 7(a) Small Loans?
- How does a lender verify the lawful permanent resident status of a non-citizen applicant?
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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