Glossary · Reading the business
In short
The systematic evaluation by a lender of a borrower's creditworthiness and ability to repay a loan. This involves reviewing financial statements, credit history, and business viability.
Your lender will conduct a thorough credit analysis on both you personally and the target business. They'll scrutinize historical financials, projections, personal credit reports, and your experience. Prepare to provide extensive documentation to demonstrate strong repayment capacity and character.
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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