{"ok":true,"canonical_url":"https://dealroom.so/glossary/assets-liabilities-and-net-worth","api_url":"https://dealroom.so/api/public/glossary/assets-liabilities-and-net-worth","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"assets-liabilities-and-net-worth","term":"Assets, Liabilities, and Net Worth","group":"Reading the business","definition":"These are the fundamental components of a balance sheet: assets are what the business owns, liabilities are what it owes, and net worth (or equity) is the difference. They show a company's financial position at a point in time.","what_it_means":"You'll analyze these on the target business's balance sheets during due diligence to understand its financial health and collateral value. Your personal financial statement will also detail your own assets, liabilities, and net worth, which lenders use to assess your capacity to repay the loan.","url":"https://dealroom.so/glossary/assets-liabilities-and-net-worth","official_sources":[],"related":[{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"liquidity-of-assets","term":"Liquidity of Assets","url":"https://dealroom.so/glossary/liquidity-of-assets"}],"related_questions":[{"question":"What is the specific personal net worth threshold that triggers a personal guaranty requirement for an owner?","url":"https://dealroom.so/sba-7a/questions/what-is-the-specific-personal-net-worth-threshold-that-triggers-a-personal-guaranty-requir"},{"question":"Can I use an SBA 7(a) loan to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-tangible-net-worth"},{"question":"What if my business has a negative net worth? Can I still get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-if-my-business-has-a-negative-net-worth-can-i-still-get-an-sba-7-a-loan"},{"question":"What is the maximum net worth requirement for a business to qualify as \"small\" for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-net-worth-requirement-for-a-business-to-qualify-as-small-for-a-7-a-loa"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Assets, Liabilities, and Net Worth","url":"https://dealroom.so/glossary/assets-liabilities-and-net-worth","source_type":"DealRoom Data"}}