Glossary · Reading the business
In short
These are the outstanding loans and liabilities a business currently owes. You need to understand these to determine what you're inheriting or how they'll be paid off in the acquisition.
During due diligence, identify all existing business debt, including lines of credit, equipment loans, and merchant cash advances. Your acquisition financing will typically pay off most of this debt at closing. Ensure all liens are properly released upon payoff to avoid future claims.
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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