Glossary · The loan itself
In short
The cash required to cover the principal and interest payments on a loan over a specific period. Your ability to cover debt service is a key factor in SBA loan approval.
Lenders analyze a business's historical and projected cash flow to ensure it can comfortably cover the new SBA loan's debt service, plus any other existing debts. This is often measured by the Debt Service Coverage Ratio (DSCR). You need to demonstrate strong repayment capacity.
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.
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