Glossary · Reading the business
In short
These are expenses for building new structures. For a buyer, knowing these costs helps assess if a business's expansion plans are feasible and if the property value reflects potential future outlays.
If you're acquiring a business that plans to build, factor these costs into your total project budget. SBA 7(a) loans can sometimes finance new construction, but it adds complexity and additional due diligence, like appraisals and environmental reviews. Understand if the seller's financials account for future construction needs.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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