Glossary · Reading the business
In short
These are positive aspects of a loan application that can offset weaker areas, making a borrower or deal more attractive to a lender. They can be crucial for getting approved if your financial profile isn't perfect.
For a 7(a) loan, strong compensating factors might include significant industry experience, a substantial cash equity injection beyond the minimum, strong personal liquidity outside the deal, or excellent credit history. Lenders look at these to mitigate risks identified in other parts of the underwriting process, like a slightly lower DSCR.
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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