Glossary · Reading the business
In short
This is the value of an asset or a company's total assets less its liabilities, as recorded on its balance sheet. It reflects historical cost less accumulated depreciation, not necessarily market value.
When evaluating a business, the net book value of its assets (like equipment or real estate) is important but often differs from fair market value. For an SBA loan, collateral is typically valued at fair market value for the collateral analysis, not net book value. Understand the difference: book value is an accounting concept, market value is what it's actually worth today.
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.
Free · No documents · Usually same-day