Glossary · People and paperwork
In short
An individual or business identified by the lender as having a higher probability of defaulting on a loan, often due to poor credit, limited experience, or weak financial history. This can make obtaining an SBA loan harder.
Lenders assess your credit score, financial history, and business experience. If you're flagged as high-risk, you might need a larger equity injection, a stronger business plan, or additional collateral. Be prepared to present a compelling case for your ability to repay and manage the business.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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