Glossary · The loan itself
Borrowing Capacity
In short
The maximum amount of money you or a business can borrow based on financial health, collateral, and ability to repay. It dictates the size of the deal you can pursue.
What it means in a deal
Your borrowing capacity for an SBA loan is determined by your personal credit, the business's cash flow, and available collateral. Lenders will assess your repayment capacity (DSCR) and overall leverage. Maximize your borrowing capacity by ensuring strong personal financials and a robust business plan.
Related terms
Common questions about Borrowing Capacity
Defined by CapBench 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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