Glossary · Reading the business
In short
Mixing personal funds with business funds, or funds from separate businesses, in a single account. This practice creates accounting headaches, obscures true business performance, and is a red flag for SBA lenders.
During due diligence, look for signs of commingling in the seller's bank statements. This makes it difficult to accurately assess the business's profitability and cash flow. After acquisition, ensure you maintain separate business and personal accounts to avoid audit issues and maintain clear financial records.
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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