Glossary · Reading the business
In short
This is the value of a business as an operating entity, including its future earning potential, rather than just the sum of its individual assets if liquidated.
Most SBA 7(a) business acquisitions are based on the going concern value, which is typically higher than liquidation value because it accounts for intangible assets like customer relationships, brand, and established cash flow. Your business valuation will focus on this, and the SBA wants to see a viable business that can continue to operate and generate profits.
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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