Glossary · The loan itself
SBA-Guaranteed Debenture
In short
A type of bond or debt instrument issued by an SBA-approved lender, backed by the SBA's guarantee, and sold in the secondary market.
What it means in a deal
When a lender makes an SBA 7(a) loan, they often sell the SBA-guaranteed portion of that loan on the secondary market to investors. This debenture represents the guaranteed portion, allowing lenders to free up capital for more loans. As a borrower, you primarily deal with the originating lender, not the debenture itself.
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 SBA-Guaranteed Debenture
- What are the lender requirements for pooling and selling the guaranteed portion?
- If my loan is guaranteed by the SBA, does that mean I don't need collateral?
- What specific lender reporting requirements apply to the sale of the guaranteed portion on the secondary market?
- What are the lender requirements for pooling and selling the guaranteed portion of a 7(a) loan?
- What specific reporting obligations does a lender have to the SBA after selling the guaranteed portion of a 7(a) loan?
- What are the SBA's reporting requirements for 7(a) lenders regarding sales of guaranteed loan portions on the secondary market?
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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