Glossary · Reading the business
In short
Debt is money owed or due to another party, typically repaid with interest over time. It's a major component of a business's liabilities and impacts its financial health.
When buying a business, you'll inherit or refinance its existing debt, and you'll incur new debt with your SBA loan. Understand all current debt obligations, their terms, and how they impact the business's cash flow. Lenders scrutinize debt to assess repayment capacity and overall leverage.
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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