Glossary · Reading the business
In short
This is the process of valuing the assets pledged to secure your loan, ensuring there's enough value to cover the debt if you default. It's crucial for lender comfort and SBA requirements.
Lenders perform a Collateral Assessment to determine what assets (like real estate, equipment, or accounts receivable) can be pledged and their liquidation value. While the SBA is not primarily collateral-based, a shortfall often requires additional personal collateral. Understand what assets are available and their appraised value.
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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