{"ok":true,"canonical_url":"https://dealroom.so/glossary/borrower-risk","api_url":"https://dealroom.so/api/public/glossary/borrower-risk","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":"borrower-risk","term":"Borrower Risk","aka":"Creditworthiness","group":"Reading the business","definition":"This is the likelihood that you, as the borrower, will default on your loan obligations. Lenders evaluate this through your credit, experience, and financial strength.","what_it_means":"Lenders assess borrower risk by looking at your personal credit history (FICO score), business experience, and personal financial statement. A higher borrower risk means a tougher time getting approved or potentially less favorable loan terms. Mitigate this with a strong business plan and sufficient equity injection.","url":"https://dealroom.so/glossary/borrower-risk","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":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"},{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"What documentation is needed to verify a borrower's equity injection when it comes from an existing business owned by the borrower?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-needed-to-verify-a-borrower-s-equity-injection-when-it-comes-from-an"},{"question":"What does 'SBA guarantee' actually mean for me, the borrower?","url":"https://dealroom.so/sba-loans/basics/what-does-sba-guarantee-actually-mean-for-me-the-borrower"},{"question":"What does the 'SBA guarantee' actually mean for me, the borrower?","url":"https://dealroom.so/sba-loans/basics/what-does-the-sba-guarantee-actually-mean-for-me-the-borrower"},{"question":"How does the SBA guarantee truly benefit me as the borrower?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-guarantee-truly-benefit-me-as-the-borrower"},{"question":"Does the SBA guaranty protect me, the borrower, if my business fails?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-guaranty-protect-me-the-borrower-if-my-business-fails"},{"question":"What is the primary purpose of SBA Form 1919, 'Borrower Information Form'?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-purpose-of-sba-form-1919-borrower-information-form"}]},"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 — Borrower Risk","url":"https://dealroom.so/glossary/borrower-risk","source_type":"DealRoom Data"}}