Glossary · Reading the business
In short
This is any debt or duty owed to the U.S. federal government, including taxes, fines, or loan defaults. It can prevent a business or individual from receiving new federal assistance.
Lenders will check if the seller or the business has outstanding federal obligations, as this can affect eligibility for an SBA loan. Ensure all such obligations are cleared before closing, as they can cause significant delays or even derail the deal.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
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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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