{"ok":true,"canonical_url":"https://dealroom.so/glossary/stress-testing","api_url":"https://dealroom.so/api/public/glossary/stress-testing","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":"stress-testing","term":"Stress-Testing","group":"Reading the business","definition":"Stress-testing is a rigorous form of financial analysis that evaluates a business's ability to withstand adverse economic conditions or significant operational challenges. It simulates worst-case scenarios.","what_it_means":"Beyond basic sensitivity analysis, stress-testing pushes variables to extremes to see if the business can still service its debt and remain viable. This is crucial for evaluating the target's ability to survive a recession, a major customer loss, or unexpected market shifts. Build these scenarios into your financial model.","url":"https://dealroom.so/glossary/stress-testing","official_sources":[],"related":[{"slug":"sensitivity-analysis","term":"Sensitivity Analysis","url":"https://dealroom.so/glossary/sensitivity-analysis"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[]},"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 — Stress-Testing","url":"https://dealroom.so/glossary/stress-testing","source_type":"DealRoom Data"}}