Glossary · Reading the business
In short
This refers to the mix of debt a business carries, including different types of loans, interest rates, and repayment terms. Buyers care because it impacts the business's financial health, cash flow, and ability to take on new debt.
When acquiring a business, you'll analyze the existing debt structure to understand its obligations and how your new SBA loan will integrate. A well-structured deal might include a seller note on standby, complementing your 7(a) loan. Consider how the total debt service will affect your cash flow.
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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