Glossary · Reading the business
In short
These are active lawsuits or legal disputes involving the business you intend to buy. Unresolved litigation can pose significant financial risks and liabilities, potentially impacting the business's value and your ability to get an SBA loan.
During due diligence, you must uncover any existing litigation. Review court records, speak with the seller's attorney, and assess potential outcomes and costs. Significant or unresolved lawsuits can make a business ineligible for an SBA loan or require specific indemnifications in your purchase agreement to protect you post-acquisition.
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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