Glossary · Reading the business
In short
This is the estimated price an asset or business would fetch if sold quickly, often under distressed conditions. It's usually much lower than fair market value or going concern value.
Lenders consider liquidation value during their collateral analysis. While they prefer a business to be a going concern, they assess what assets could be sold for if the business fails. This provides a worst-case scenario recovery estimate for the collateral securing your loan.
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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