Glossary · Reading the business
In short
This is the likelihood that you, as the borrower, will default on your loan obligations. Lenders evaluate this through your credit, experience, and financial strength.
Lenders assess borrower risk by looking at your personal credit history (FICO score), business experience, and personal financial statement. A higher borrower risk means a tougher time getting approved or potentially less favorable loan terms. Mitigate this with a strong business plan and sufficient equity injection.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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