Glossary · Reading the business
In short
The monetary worth of a business's tangible assets like equipment, inventory, and real estate. Lenders use this to assess collateral for your loan.
Your lender will appraise the fair market value of the business's assets to determine collateral coverage for your loan. They'll also consider liquidation value, which is usually lower. Understand which assets are being pledged and their assessed value, as this directly impacts the collateral shortfall calculation and your equity injection requirements.
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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