{"ok":true,"canonical_url":"https://dealroom.so/glossary/high-risk-borrower","api_url":"https://dealroom.so/api/public/glossary/high-risk-borrower","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":"high-risk-borrower","term":"High-Risk Borrower","group":"People and paperwork","definition":"An individual or business identified by the lender as having a higher probability of defaulting on a loan, often due to poor credit, limited experience, or weak financial history. This can make obtaining an SBA loan harder.","what_it_means":"Lenders assess your credit score, financial history, and business experience. If you're flagged as high-risk, you might need a larger equity injection, a stronger business plan, or additional collateral. Be prepared to present a compelling case for your ability to repay and manage the business.","url":"https://dealroom.so/glossary/high-risk-borrower","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"}],"related":[{"slug":"financial-responsibility","term":"Financial Responsibility","url":"https://dealroom.so/glossary/financial-responsibility"},{"slug":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"},{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"question":"Can an SBA 7(a) loan be used to refinance high-interest business debt?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-refinance-high-interest-business-debt"},{"question":"What if the business I'm acquiring is losing money but has high growth potential?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-is-losing-money-but-has-high-growth-potential"},{"question":"Does having a high amount of personal student loan debt affect SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/does-having-a-high-amount-of-personal-student-loan-debt-affect-sba-7-a-loan-approval"},{"question":"What if my personal debt-to-income ratio is high, even with a good credit score?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-debt-to-income-ratio-is-high-even-with-a-good-credit-score"},{"question":"How does high customer concentration in a target business affect SBA 7(a) acquisition loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-high-customer-concentration-in-a-target-business-affect-sba-7-a-acquisition-loan-"},{"question":"What specific factors should a lender assess when underwriting a business with a high customer concentration?","url":"https://dealroom.so/for-lenders/questions/what-specific-factors-should-a-lender-assess-when-underwriting-a-business-with-a-high-cust"}]},"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 — High-Risk Borrower","url":"https://dealroom.so/glossary/high-risk-borrower","source_type":"DealRoom Data"}}