Glossary · Doing the deal
In short
This is when your lender regularly reviews your business's financial performance to ensure you're meeting the specific conditions outlined in your loan agreement. It's how the bank makes sure you're keeping your promises.
Your SBA loan will include covenants, such as maintaining certain debt service coverage ratios or liquidity levels. The lender will conduct regular covenant compliance checks. Understand these requirements upfront and proactively manage your business to stay within them, as breaches can trigger a loan default.
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day