{"ok":true,"canonical_url":"https://dealroom.so/glossary/ability-to-repay","api_url":"https://dealroom.so/api/public/glossary/ability-to-repay","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"ability-to-repay","term":"Ability to repay","group":"The loan itself","definition":"This is the lender's assessment of whether your business's future cash flow can cover all its debt payments, including the SBA loan. It's the primary factor in loan approval.","what_it_means":"Lenders scrutinize your projections and the business's historical performance to determine your ability to repay. They use metrics like DSCR to quantify this. If the numbers don't clearly support repayment, your loan won't get approved, so ensure your business plan is robust.","url":"https://dealroom.so/glossary/ability-to-repay","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"global-cash-flow","term":"Global cash flow","url":"https://dealroom.so/glossary/global-cash-flow"}],"related_questions":[{"question":"What happens if a significant post-closing event impacts the borrower's ability to repay an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-significant-post-closing-event-impacts-the-borrower-s-ability-to-repay-a"},{"question":"How does a lender assess the impact of a significant post-closing event on the borrower's ability to repay a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-the-impact-of-a-significant-post-closing-event-on-the-borrower-s-"},{"question":"How does an SBA 7(a) loan affect my ability to get future business financing?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-affect-my-ability-to-get-future-business-financing"},{"question":"How does a past criminal conviction affect my ability to get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-does-a-past-criminal-conviction-affect-my-ability-to-get-an-sba-7-a-loan"},{"question":"How does a lender assess the impact of a significant decline in the borrower's industry on 7(a) loan repayment ability?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-the-impact-of-a-significant-decline-in-the-borrower-s-industry-on"},{"question":"How does an SBA 7(a) loan impact a borrower's ability to obtain other federal government financing?","url":"https://dealroom.so/for-lenders/questions/how-does-an-sba-7-a-loan-impact-a-borrower-s-ability-to-obtain-other-federal-government-fi"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Ability to repay","url":"https://dealroom.so/glossary/ability-to-repay","source_type":"DealRoom Data"}}