Glossary · Reading the business
In short
The purchase of a business's current stock of goods for sale. This is a common and eligible use of 7(a) loan proceeds when buying a business.
As part of buying a business, you'll often acquire its inventory. The 7(a) loan can fund this, ensuring you have product to sell from day one. During due diligence, confirm the inventory's value, salability, and that it's not obsolete to avoid overpaying.
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.
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