Glossary · Reading the business
In short
Amounts owed by the business or seller to the federal government for taxes like income, payroll, or excise taxes. Unpaid federal tax liabilities can become a lien on business assets or even transfer to you as a buyer.
During due diligence, obtain IRS transcripts (Form 4506-T) for the business and seller to verify reported income and identify any outstanding federal tax liabilities or liens. Ensure all federal tax liens are paid and released at closing, as the SBA lender will not allow them to remain on your collateral.
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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