Glossary · Reading the business
In short
A derogatory mark is a negative entry on your credit report, like a late payment or bankruptcy. It signals to lenders that you may be a higher credit risk.
Derogatory marks on your personal credit report, such as bankruptcies, foreclosures, or significant late payments, will be closely scrutinized during the SBA 7(a) loan underwriting process. You'll need to explain these issues and demonstrate that they won't impact your ability to repay the new business loan.
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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