Glossary · Reading the business
In short
This is any risk significant enough to influence a reasonable person's decision about buying or lending to a business. It's a critical factor in due diligence.
During due diligence, you must uncover and assess all material risks, whether financial, operational, or legal. Lenders will also identify these, as they impact the business's repayment capacity and loan eligibility. Don't hide or downplay risks; address them head-on.
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.
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