{"ok":true,"canonical_url":"https://dealroom.so/glossary/lender-underwriting","api_url":"https://dealroom.so/api/public/glossary/lender-underwriting","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":"lender-underwriting","term":"Lender underwriting","group":"Doing the deal","definition":"This is the lender's process of evaluating your loan application and the business's financials to decide if you and the business are creditworthy for an SBA 7(a) loan. It determines if the deal goes forward.","what_it_means":"The lender reviews your personal credit, experience, and financial strength, alongside the target business's cash flow, assets, and liabilities. They assess repayment capacity and collateral adequacy. Be prepared to provide extensive documentation; thorough preparation speeds this critical step.","url":"https://dealroom.so/glossary/lender-underwriting","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":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"},{"slug":"credit-analysis","term":"Credit analysis","url":"https://dealroom.so/glossary/credit-analysis"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"How does a lender document adherence to prudent lending standards in the underwriting credit memo?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-document-adherence-to-prudent-lending-standards-in-the-underwriting-cred"},{"question":"Can the lender charge application fees or underwriting fees in addition to the SBA guaranty fee?","url":"https://dealroom.so/sba-7a/questions/can-the-lender-charge-application-fees-or-underwriting-fees-in-addition-to-the-sba-guarant"},{"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"},{"question":"How does a lender ensure compliance with 'prudent lending standards' when underwriting a startup 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-compliance-with-prudent-lending-standards-when-underwriting-a-sta"},{"question":"What is the lender's process for underwriting a change of ownership with an earn-out provision?","url":"https://dealroom.so/for-lenders/questions/what-is-the-lender-s-process-for-underwriting-a-change-of-ownership-with-an-earn-out-provi"},{"question":"What specific lender actions or omissions during underwriting are most likely to result in a 'repair' of the SBA guaranty?","url":"https://dealroom.so/for-lenders/questions/what-specific-lender-actions-or-omissions-during-underwriting-are-most-likely-to-result-in"}]},"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 — Lender underwriting","url":"https://dealroom.so/glossary/lender-underwriting","source_type":"DealRoom Data"}}