Glossary · Reading the business
In short
These are any outstanding debts the business currently owes. You need to know if these will be paid off at closing or assumed by you.
During Due diligence, get a complete list of the seller's business debts, including UCC lien filings. Determine which, if any, will be assumed as part of the Asset purchase or Stock purchase, and ensure they are accounted for in the Total project costs. Most 7(a) deals require seller debt to be paid off at closing.
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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