Glossary · Reading the business
In short
This is the amount of tax a business owes to the federal government. Unpaid or mismanaged tax obligations can signal financial distress or compliance issues.
Lenders will require the seller's federal tax returns and IRS transcripts (Form 4506-T) to verify reported revenue and expenses. Any outstanding federal tax obligations or liens will need to be resolved at closing. Ensure the seller is current on all federal taxes, as this is a strict SBA eligibility requirement.
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.
Free · No documents · Usually same-day