Glossary · Reading the business
In short
These are significant additions or alterations to a business's fixed assets, such as property or equipment, that increase their value or extend their useful life, beyond routine maintenance.
When evaluating a target business, pay close attention to any deferred capital improvements. If the seller has neglected necessary upgrades, you will incur these costs post-acquisition, which will impact your future cash flow. SBA loan funds can be used for these types of improvements, so factor them into your total project costs during due diligence.
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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