Glossary · Reading the business
In short
This is the total cost a business pays to finance its operations, including interest on debt and returns to equity investors. For a buyer, it impacts the overall profitability and financial structure of the acquisition.
When you acquire a business with an SBA loan, the interest rate and fees are a key component of your debt's cost of capital. Combine this with the return you expect on your equity injection to understand the full financing cost. High cost of capital can strain cash flow and reduce your effective return.
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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