Glossary · Reading the business
In short
An assessment performed by the lender to determine if the business's assets sufficiently secure the full SBA loan amount. A significant gap means additional collateral, often personal, will be required.
Lenders conduct this analysis to identify any 'collateral shortfall.' If the business assets do not fully cover the loan, the SBA requires all available equity in your personal real estate (e.g., your home) to be pledged as additional collateral. Be prepared for this potential personal exposure.
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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