Glossary · Reading the business
In short
This refers to how a business finances its operations and growth through debt and equity. Understanding it shows you the existing financial leverage and how your 7(a) loan will fit in.
When buying a business, analyze the existing capital structure to see what debt the business carries and how much equity the current owner has invested. Your acquisition will likely replace existing debt with your 7(a) loan and seller financing, plus your equity injection, fundamentally changing this structure.
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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