{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-underwriting","api_url":"https://dealroom.so/api/public/glossary/loan-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":"loan-underwriting","term":"Loan underwriting","group":"The loan itself","definition":"This is the lender's process of evaluating your application and the business to decide if they'll approve the loan and under what terms. It's where they assess risk.","what_it_means":"During underwriting, the lender scrutinizes your creditworthiness, the business's financial statements, collateral, and your business plan. They're looking for strong repayment capacity and mitigated risk, using the 5 Cs of Credit. Your job is to provide clear, complete information to expedite this process.","url":"https://dealroom.so/glossary/loan-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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"risk-profile","term":"Risk profile","url":"https://dealroom.so/glossary/risk-profile"},{"slug":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"question":"What happens if the acquired business declines significantly during the loan underwriting period?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-acquired-business-declines-significantly-during-the-loan-underwriting-"},{"question":"How does the SBA assess \"prudent lending standards\" in 7(a) loan underwriting?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-assess-prudent-lending-standards-in-7-a-loan-underwriting"},{"question":"What constitutes prudent lending standards for SBA 7(a) underwriting?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-lending-standards-for-sba-7-a-underwriting"},{"question":"What common underwriting errors typically lead to an SBA 7(a) loan guaranty repair?","url":"https://dealroom.so/for-lenders/questions/what-common-underwriting-errors-typically-lead-to-an-sba-7-a-loan-guaranty-repair"},{"question":"How does the sunset of the SBSS score impact 7(a) Small Loan underwriting?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sunset-of-the-sbss-score-impact-7-a-small-loan-underwriting"},{"question":"What if the seller withdraws from the sale agreement during the SBA loan underwriting process?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-withdraws-from-the-sale-agreement-during-the-sba-loan-underwriting-proc"}]},"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 — Loan underwriting","url":"https://dealroom.so/glossary/loan-underwriting","source_type":"DealRoom Data"}}