Glossary · Reading the business
In short
This is when you buy long-term physical assets like equipment or real estate, not inventory. For a buyer, these are key to the business's operational capacity and future value.
In an SBA 7(a) acquisition, a fixed asset purchase could be a significant portion of the Use of Proceeds. You'll need an appraisal for these assets to confirm their fair market value, especially for larger items or real estate. Ensure the asset's useful life aligns with the loan term.
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.
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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