Glossary · Reading the business
In short
The total amount of money paid by the borrower for the use of borrowed funds over the life of a loan. Buyer cares because it's a significant expense that impacts the business's profitability and cash flow.
For an acquisition, you'll project the Interest Cost of your SBA 7(a) loan as a major operating expense. A variable rate loan means your Interest Cost can fluctuate, impacting your Cash Flow After Debt Service. Model different interest rate scenarios during due diligence to understand potential impacts.
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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