{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-debt-to-income-ratio","api_url":"https://dealroom.so/api/public/glossary/personal-debt-to-income-ratio","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":"personal-debt-to-income-ratio","term":"Personal Debt-to-Income Ratio","group":"Reading the business","definition":"A measure comparing your total monthly debt payments to your gross monthly income, indicating your ability to manage personal debt.","what_it_means":"Lenders assess your personal debt-to-income ratio as part of evaluating your overall creditworthiness and global cash flow. A high ratio can signal financial strain and may impact your loan approval, especially since you'll be personally guaranteeing the SBA loan. Be prepared to provide detailed personal financial statements and tax returns.","url":"https://dealroom.so/glossary/personal-debt-to-income-ratio","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":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"},{"slug":"global-cash-flow","term":"Global cash flow","url":"https://dealroom.so/glossary/global-cash-flow"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[{"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":"What if I have a high debt-to-income ratio personally, even with a good credit score?","url":"https://dealroom.so/sba-7a/questions/what-if-i-have-a-high-debt-to-income-ratio-personally-even-with-a-good-credit-score"},{"question":"What if my personal credit score is strong (720+), but I have high personal debt-to-income (DTI)?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-score-is-strong-720-but-i-have-high-personal-debt-to-income-dti"},{"question":"What is the debt-to-worth ratio requirement for a $0-down partner buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-debt-to-worth-ratio-requirement-for-a-0-down-partner-buyout"},{"question":"Does the SBA require a specific debt service coverage ratio (DSCR) for approval?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-a-specific-debt-service-coverage-ratio-dscr-for-approval"},{"question":"When is a debt service coverage ratio waiver or exception possible for an acquisition?","url":"https://dealroom.so/for-lenders/questions/when-is-a-debt-service-coverage-ratio-waiver-or-exception-possible-for-an-acquisition"}]},"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 — Personal Debt-to-Income Ratio","url":"https://dealroom.so/glossary/personal-debt-to-income-ratio","source_type":"DealRoom Data"}}