{"ok":true,"canonical_url":"https://dealroom.so/glossary/debt-service-coverage-ratio-waiver","api_url":"https://dealroom.so/api/public/glossary/debt-service-coverage-ratio-waiver","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":"debt-service-coverage-ratio-waiver","term":"Debt service coverage ratio waiver","group":"The loan itself","definition":"A waiver allows a lender to approve a loan even if the business's projected cash flow doesn't meet the typical minimum Debt Service Coverage Ratio (DSCR). This matters because it can make a deal financeable that otherwise wouldn't be.","what_it_means":"The SBA generally requires a DSCR of 1.15:1 for most loans. A waiver means the lender can go below this, often to 1.00:1, if the deal has strong mitigating factors. You need to understand why the waiver is needed and if the lender is confident getting SBA approval.","url":"https://dealroom.so/glossary/debt-service-coverage-ratio-waiver","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":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"sba-7-a-loan-program","term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"}],"related_questions":[{"question":"When is a debt service coverage ratio waiver or exception possible for an acquisition?","url":"https://dealroom.so/for-lenders/questions/when-is-a-debt-service-coverage-ratio-waiver-or-exception-possible-for-an-acquisition"},{"question":"Does the SBA require a specific debt service coverage ratio (DSCR) for approval?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-a-specific-debt-service-coverage-ratio-dscr-for-approval"},{"question":"How does a seller note on full standby affect the debt service coverage ratio calculation?","url":"https://dealroom.so/sba-7a/questions/how-does-a-seller-note-on-full-standby-affect-the-debt-service-coverage-ratio-calculation"},{"question":"What level of debt service coverage ratio (DSCR) does an SBA 7(a) lender typically look for?","url":"https://dealroom.so/sba-7a/questions/what-level-of-debt-service-coverage-ratio-dscr-does-an-sba-7-a-lender-typically-look-for"},{"question":"How does a seller note on partial standby affect an SBA 7(a) loan's debt service coverage ratio?","url":"https://dealroom.so/for-lenders/questions/how-does-a-seller-note-on-partial-standby-affect-an-sba-7-a-loan-s-debt-service-coverage-r"},{"question":"What are the consequences if the borrower's debt service coverage ratio (DSCR) falls below the lender's minimum after closing?","url":"https://dealroom.so/sba-7a/questions/what-are-the-consequences-if-the-borrower-s-debt-service-coverage-ratio-dscr-falls-below-t"}]},"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 — Debt service coverage ratio waiver","url":"https://dealroom.so/glossary/debt-service-coverage-ratio-waiver","source_type":"DealRoom Data"}}