Glossary · Reading the business
In short
An assessment of a borrower's likelihood to default on debt, based on their financial history, credit scores, and stability. Lenders use this to decide on loan approval and terms.
Lenders will evaluate both your personal and the target business's credit risk profile. This involves reviewing FICO scores, credit reports, and any derogatory marks. A strong profile makes your 7(a) loan application more competitive and can lead to better 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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