Glossary · Reading the business
In short
This refers to a business that can operate without direct control or reliance on a larger parent company or external entity. For SBA loans, the business must be truly independent.
The SBA has rules about affiliation, meaning the business you buy must operate independently. If it's too tied to the seller's other businesses, it might be considered an affiliate, potentially impacting eligibility or size standards. Ensure the business is standalone post-acquisition.
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.
Free · No documents · Usually same-day