{"ok":true,"canonical_url":"https://dealroom.so/glossary/overall-leverage","api_url":"https://dealroom.so/api/public/glossary/overall-leverage","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":"overall-leverage","term":"Overall Leverage","group":"Reading the business","definition":"This measures the total debt a business or buyer carries relative to its equity or assets. High leverage means more risk for lenders, impacting your loan terms and approval.","what_it_means":"Lenders assess your personal and business leverage. For a business acquisition, they look at the debt-to-equity ratio of the acquired business and your personal debt load. Too much debt can signal repayment risk, affecting your global cash flow and the bank's willingness to lend. Understand how the new SBA debt impacts this ratio.","url":"https://dealroom.so/glossary/overall-leverage","official_sources":[],"related":[{"slug":"debt-to-income-ratio","term":"Debt-to-Income Ratio","url":"https://dealroom.so/glossary/debt-to-income-ratio"},{"slug":"global-cash-flow","term":"Global cash flow","url":"https://dealroom.so/glossary/global-cash-flow"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"Is there an overall limit to the total amount of SBA 7(a) loans a business can have?","url":"https://dealroom.so/sba-loans/basics/is-there-an-overall-limit-to-the-total-amount-of-sba-7-a-loans-a-business-can-have"},{"question":"How does the appraised value of goodwill impact the overall structure and terms of my SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-the-appraised-value-of-goodwill-impact-the-overall-structure-and-terms-of-my-sba-"}]},"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 — Overall Leverage","url":"https://dealroom.so/glossary/overall-leverage","source_type":"DealRoom Data"}}