Glossary · Reading the business
In short
Protects the business's physical assets, like buildings and equipment, from damage due to events like fire or storms. Lenders require this to protect their collateral.
Your lender will require you to maintain adequate hazard insurance on all business assets that serve as collateral for the 7(a) loan. This ensures that if a covered event damages these assets, the loan collateral is protected, and the business can recover.
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.
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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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