{"ok":true,"canonical_url":"https://dealroom.so/glossary/mitigating-factors","api_url":"https://dealroom.so/api/public/glossary/mitigating-factors","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":"mitigating-factors","term":"Mitigating factors","group":"The loan itself","definition":"Explanations or specific circumstances that reduce the severity or negative impact of past events, such as credit issues or business failures. Buyers use these to strengthen their loan application despite blemishes on their financial history.","what_it_means":"If your credit report contains derogatory marks or you've experienced a past bankruptcy, identify and clearly articulate any mitigating factors to your lender. This could include unforeseen job loss, a significant medical emergency, or a failed business venture from which you gained valuable experience. Your explanation helps the lender assess your character and repayment capacity.","url":"https://dealroom.so/glossary/mitigating-factors","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":"personal-foreclosure","term":"Personal foreclosure","url":"https://dealroom.so/glossary/personal-foreclosure"},{"slug":"short-sale","term":"Short sale","url":"https://dealroom.so/glossary/short-sale"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"What factors determine the maximum loan amount my business can qualify for?","url":"https://dealroom.so/sba-loans/basics/what-factors-determine-the-maximum-loan-amount-my-business-can-qualify-for"},{"question":"What factors decide the interest rate on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-factors-decide-the-interest-rate-on-an-sba-7-a-loan"},{"question":"What factors are considered when evaluating affiliation between businesses that share common management?","url":"https://dealroom.so/for-lenders/questions/what-factors-are-considered-when-evaluating-affiliation-between-businesses-that-share-comm"},{"question":"What specific factors trigger affiliation for common management for 7(a) size standards?","url":"https://dealroom.so/for-lenders/questions/what-specific-factors-trigger-affiliation-for-common-management-for-7-a-size-standards"},{"question":"What factors can make the SBA 7(a) loan process faster or slower?","url":"https://dealroom.so/sba-loans/basics/what-factors-can-make-the-sba-7-a-loan-process-faster-or-slower"}]},"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 — Mitigating factors","url":"https://dealroom.so/glossary/mitigating-factors","source_type":"DealRoom Data"}}