Glossary · Reading the business
In short
The lender's thorough review of the borrower's and business's financial history, projections, and collateral. It assesses the overall risk of the loan and your ability to repay.
Your SBA lender conducts comprehensive credit underwriting to evaluate your ability to repay the loan and the risk involved. This involves scrutinizing your personal credit, the target business's financials, your business plan, and the deal structure. Be prepared to provide extensive documentation and answer detailed questions to demonstrate your creditworthiness and repayment capacity.
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.
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.
Free · No documents · Usually same-day