Glossary · The loan itself
In short
Specific conditions in your loan agreement require the business to maintain certain financial ratios or performance levels. Failing to meet these can trigger a loan default.
Your SBA loan agreement will include covenants like maintaining a minimum Debt Service Coverage Ratio (DSCR) or specific liquidity levels. Understand these thoroughly, as breaching them can put your loan in default, even if payments are current. Monitor your business's financial performance against these metrics.
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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