Glossary · Reading the business
In short
Items of value owned by the business, like cash, inventory, equipment, or real estate. These are what you acquire and what the bank might use as collateral.
In an asset purchase for an SBA 7(a) loan, you are buying the business's assets. These assets will serve as collateral for your loan. Understanding their value and condition is critical during due diligence.
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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