Glossary · Reading the business
In short
This is a measure of a financial institution's capital relative to its risk-weighted assets, used by regulators to ensure banks have enough capital to absorb potential losses. This typically applies to the lender, not your target business.
While not directly about your target business, your lender's regulatory capital ratio can indirectly affect loan availability and terms. Banks must maintain certain ratios to lend. Understanding this helps you appreciate the lender's risk assessment and their requirements for your loan.
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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