Glossary · Reading the business
Debt-to-Income(DTI, Debt-to-Income Ratio)
In short
This ratio compares your total monthly debt payments to your gross monthly income. Lenders use it to gauge your ability to manage additional debt.
What it means in a deal
Your personal debt-to-income ratio is a key factor in your global cash flow analysis for an SBA loan. If your personal DTI is too high, it can negatively impact the lender's assessment of your ability to support the business's debt, especially if the business is borderline.
Official sources
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.
Related terms
Common questions about Debt-to-Income
- What if my personal debt-to-income ratio is high, even with a good credit score?
- What if I have a high debt-to-income ratio personally, even with a good credit score?
- What if my personal credit score is strong (720+), but I have high personal debt-to-income (DTI)?
- Is there an income limit for my business to be "small" by SBA rules?
- What is the maximum percentage of passive income a business can generate to remain 7(a) eligible?
- How is prior owner debt converted to equity treated for injection purposes?
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.
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.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.