Glossary · The loan itself
Shared Risk
In short
This refers to how the risk of a loan default is divided between the lender and the SBA. The SBA doesn't guarantee 100% of your loan.
What it means in a deal
With an SBA 7(a) loan, the SBA guarantees a portion of the loan, typically 75% or 85%, meaning the lender still carries some risk. This shared risk encourages lenders to underwrite prudently while still making capital available to small businesses. It's why lenders still scrutinize your application carefully.
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 Shared Risk
- Are businesses with shared facilities or equipment considered affiliated for SBA size standards?
- When does a shared resource agreement create affiliation for SBA size standard calculations?
- Is a spouse's personal guarantee always required if they have significant shared assets?
- How do potential conflicts of interest with the seller, like shared services, affect approval?
- How do shared investors in multiple entities trigger affiliation for SBA size standard calculations?
- How do shared administrative services, like HR or accounting, automatically trigger affiliation for size determination?
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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