{"ok":true,"canonical_url":"https://dealroom.so/glossary/tangible-net-worth","api_url":"https://dealroom.so/api/public/glossary/tangible-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":"tangible-net-worth","term":"Tangible net worth","group":"Reading the business","definition":"This is a measure of a business's net worth, excluding intangible assets like goodwill. Lenders use it to assess financial health, particularly for businesses seeking larger loans.","what_it_means":"For larger SBA 7(a) loans (over $5 million), the SBA has a \"tangible net worth\" size standard in addition to employee and revenue standards. You need to ensure the target business, plus any affiliates, meets this if you're pursuing a larger deal.","url":"https://dealroom.so/glossary/tangible-net-worth","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"goodwill","term":"Goodwill","url":"https://dealroom.so/glossary/goodwill"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"}],"related_questions":[{"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 is the maximum tangible net worth for a business to be considered 'small' under the alternative size standard?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-tangible-net-worth-for-a-business-to-be-considered-small-under-the-alt"},{"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":"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"}]},"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 — Tangible net worth","url":"https://dealroom.so/glossary/tangible-net-worth","source_type":"DealRoom Data"}}