{"ok":true,"canonical_url":"https://dealroom.so/glossary/borrowing-base","api_url":"https://dealroom.so/api/public/glossary/borrowing-base","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":"borrowing-base","term":"Borrowing base","group":"The loan itself","definition":"The maximum amount a lender allows you to draw from a line of credit, based on eligible collateral like accounts receivable and inventory.","what_it_means":"While less common for standard SBA 7(a) term loans in acquisitions, a borrowing base is crucial if you're getting an SBA-backed line of credit (e.g., SBA Express Line of Credit or a Working Capital Pilot Program loan). The lender will regularly evaluate your collateral to determine how much you can access. Understand the calculation and reporting requirements to manage your cash flow effectively.","url":"https://dealroom.so/glossary/borrowing-base","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":"line-of-credit","term":"Line of credit","url":"https://dealroom.so/glossary/line-of-credit"},{"slug":"accounts-receivable","term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"What specific alternative base rates are permissible for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-specific-alternative-base-rates-are-permissible-for-variable-rate-7-a-loans"},{"question":"What alternative base rate options are available for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-alternative-base-rate-options-are-available-for-variable-rate-7-a-loans"},{"question":"What are the currently approved base rate options for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-currently-approved-base-rate-options-for-variable-rate-7-a-loans"},{"question":"What are the current alternative base rate options for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-for-variable-rate-7-a-loans"},{"question":"What are the current alternative base rate options available for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-available-for-variable-rate-7-a-loans"},{"question":"What is the difference between the base rate and the spread on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-the-base-rate-and-the-spread-on-an-sba-7-a-loan"}]},"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 — Borrowing base","url":"https://dealroom.so/glossary/borrowing-base","source_type":"DealRoom Data"}}