Glossary · Reading the business
In short
These are agreements where the business provides goods or services to federal, state, or local government entities. They can be stable revenue, but come with strict rules and potential risks.
If the target business relies heavily on government contracts, you need to understand the terms, renewal likelihood, and any specific compliance requirements. These contracts often have unique payment processes and transferability issues that impact your cash flow post-acquisition.
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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