Glossary · The loan itself
In short
A waiver allows a lender to approve a loan even if the business's projected cash flow doesn't meet the typical minimum Debt Service Coverage Ratio (DSCR). This matters because it can make a deal financeable that otherwise wouldn't be.
The SBA generally requires a DSCR of 1.15:1 for most loans. A waiver means the lender can go below this, often to 1.00:1, if the deal has strong mitigating factors. You need to understand why the waiver is needed and if the lender is confident getting SBA approval.
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.
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