{"ok":true,"canonical_url":"https://dealroom.so/glossary/underwriting-standard","api_url":"https://dealroom.so/api/public/glossary/underwriting-standard","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":"underwriting-standard","term":"Underwriting standard","group":"The loan itself","definition":"These are the specific criteria and policies a lender uses to evaluate a loan applicant's creditworthiness and the viability of the business. Meeting these standards is essential for loan approval.","what_it_means":"Every SBA 7(a) lender has \"underwriting standards\" that must align with \"SOP 50 10\" and 13 CFR Part 120. They assess your \"creditworthiness,\" \"repayment capacity,\" and the business's \"cash flow.\" You need to present a strong case meeting these standards, which include FICO scores, DSCR, and equity injection requirements.","url":"https://dealroom.so/glossary/underwriting-standard","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":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"},{"slug":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"sop-50-10","term":"SOP 50 10","url":"https://dealroom.so/glossary/sop-50-10"}],"related_questions":[{"question":"Does the sunset of SBSS affect the underwriting requirements for standard 7(a) loans above the Small Loan threshold?","url":"https://dealroom.so/for-lenders/questions/does-the-sunset-of-sbss-affect-the-underwriting-requirements-for-standard-7-a-loans-above-"},{"question":"What constitutes prudent lending standards for SBA 7(a) underwriting?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-lending-standards-for-sba-7-a-underwriting"},{"question":"What constitutes prudent lending standards for SBA 7(a) underwriting regarding credit analysis?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-lending-standards-for-sba-7-a-underwriting-regarding-credit-analy"},{"question":"How does the SBA assess \"prudent lending standards\" in 7(a) loan underwriting?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-assess-prudent-lending-standards-in-7-a-loan-underwriting"},{"question":"How does a lender document adherence to prudent lending standards in the underwriting credit memo?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-document-adherence-to-prudent-lending-standards-in-the-underwriting-cred"},{"question":"How does the SBA evaluate \"prudent lending standards\" in 7(a) loan underwriting regarding collateral analysis?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-prudent-lending-standards-in-7-a-loan-underwriting-regarding-col"}]},"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 — Underwriting standard","url":"https://dealroom.so/glossary/underwriting-standard","source_type":"DealRoom Data"}}