Glossary · Reading the business
In short
This is a lender's process of evaluating both your personal creditworthiness and the target business's financial health. It determines if you and the business are likely to repay the loan, which is essential for loan approval.
Lenders will pull your personal credit report and FICO score, and analyze the business's historical financial data, cash flow, and overall leverage. Be prepared to provide accurate financial statements and address any derogatory marks or liabilities early on.
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.
Free · No documents · Usually same-day