Glossary · Reading the business
In short
This is the going rate for similar commercial properties in the area. When buying a business that leases from a seller-owned entity, ensure the rent isn't artificially low or high.
If the seller's operating business leases from a related real estate entity, the rent must be at "fair market" rates. Artificially low rent inflates the business's profitability, while high rent might be a disguised distribution. Your lender will verify this to ensure the business's true cash flow can support the new debt.
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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