Glossary · Reading the business
In short
An assessment of a borrower's or business's ability and willingness to repay debt. Lenders evaluate this through your personal credit score and the business's financial health.
For an SBA 7(a) loan, lenders assess both your personal credit quality (FICO score, credit report) and the target business's financial stability. Derogatory marks on your personal credit or a business with poor repayment capacity can jeopardize loan approval. Ensure both are strong.
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.
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