Glossary · The loan itself
In short
The maximum amount a lender allows you to draw from a line of credit, based on eligible collateral like accounts receivable and inventory.
While less common for standard SBA 7(a) term loans in acquisitions, a borrowing base is crucial if you're getting an SBA-backed line of credit (e.g., SBA Express Line of Credit or a Working Capital Pilot Program loan). The lender will regularly evaluate your collateral to determine how much you can access. Understand the calculation and reporting requirements to manage your cash flow effectively.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
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