Glossary · Reading the business
In short
The period over which an asset is expected to be useful to its owner, generating revenue or providing service. The SBA uses this to determine loan terms for certain assets.
When financing assets like equipment or leasehold improvements, the SBA loan term cannot exceed the asset's economic life. An appraisal will often assess this. Ensure the proposed loan term aligns with the useful life of the major assets you are acquiring to avoid issues with loan approval.
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