Glossary · Reading the business
In short
A risk mitigant is a strategy or asset used to reduce or offset identified risks within a business or transaction. It makes a deal less risky for both you and the lender.
When underwriting your loan, the lender looks for ways to mitigate identified risks, such as a strong cash flow projection, a substantial equity injection, or a seller note on standby. Your job is to present a strong case for why identified risks are manageable or offset, improving your loan approval chances.
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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