Glossary · Reading the business
In short
This refers to the inherent risks associated with the specific industry in which the target business operates, such as economic downturns, technological disruption, or regulatory changes. It directly impacts the business's stability and future cash flow.
Lenders carefully assess Industry Risk during underwriting, looking at factors like industry trends, competition, and barriers to entry. You need to do the same. A high-risk industry might require a stronger financial position or more collateral from you, or even make the business ineligible for an SBA loan.
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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