{"ok":true,"canonical_url":"https://dealroom.so/glossary/repayment-ability","api_url":"https://dealroom.so/api/public/glossary/repayment-ability","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":"repayment-ability","term":"Repayment Ability","group":"Reading the business","definition":"This is the business's capacity to generate enough cash flow to cover all its debt obligations, including your new SBA loan. Lenders scrutinize this to ensure the business can handle the loan payments.","what_it_means":"Your lender will analyze historical cash flow, projected earnings, and your personal financial strength to determine if the business can service the new debt. They look at metrics like DSCR and global cash flow. If the business can't clearly cover the debt, your loan won't get approved.","url":"https://dealroom.so/glossary/repayment-ability","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":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"global-cash-flow","term":"Global cash flow","url":"https://dealroom.so/glossary/global-cash-flow"},{"slug":"credit-analysis","term":"Credit analysis","url":"https://dealroom.so/glossary/credit-analysis"}],"related_questions":[{"question":"How does a lender assess the impact of a significant decline in the borrower's industry on 7(a) loan repayment ability?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-the-impact-of-a-significant-decline-in-the-borrower-s-industry-on"},{"question":"How does an SBA 7(a) loan affect my ability to get future business financing?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-affect-my-ability-to-get-future-business-financing"},{"question":"How does a past criminal conviction affect my ability to get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-does-a-past-criminal-conviction-affect-my-ability-to-get-an-sba-7-a-loan"},{"question":"How does an SBA 7(a) loan impact a borrower's ability to obtain other federal government financing?","url":"https://dealroom.so/for-lenders/questions/how-does-an-sba-7-a-loan-impact-a-borrower-s-ability-to-obtain-other-federal-government-fi"},{"question":"What happens if a significant post-closing event impacts the borrower's ability to repay an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-significant-post-closing-event-impacts-the-borrower-s-ability-to-repay-a"},{"question":"How much does a lower personal credit score, like 620, impact my ability to get an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-much-does-a-lower-personal-credit-score-like-620-impact-my-ability-to-get-an-sba-7-a-l"}]},"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 — Repayment Ability","url":"https://dealroom.so/glossary/repayment-ability","source_type":"DealRoom Data"}}