Glossary · Reading the business
In short
Credit risk is the potential for a borrower to fail to repay a loan according to the agreed terms. Lenders assess this risk to determine if they should approve your 7(a) loan and at what terms.
Your lender will perform a thorough Credit Analysis on both the business's historical performance and your personal financial standing. They evaluate factors like the business's cash flow, your Credit Score, and the Collateral Value. A higher Credit Risk means a lower chance of loan approval or potentially less favorable loan terms.
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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