Glossary · Reading the business
In short
Delinquent federal taxes are unpaid taxes owed to the U.S. government by the business or its principals. These can include income, payroll, or excise taxes.
Unresolved delinquent federal taxes are a significant red flag for SBA lenders and typically must be fully paid or on a satisfactory repayment plan before loan closing. During due diligence, obtain IRS transcripts (4506-T) for the business and seller to uncover any undisclosed tax liabilities that could impact the deal or your ability to get a loan.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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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