Glossary · Reading the business
In short
The amount of time you, as the buyer, plan to use the purchased property for your business operations. This period is crucial for evaluating lease terms or real estate investment.
If you're buying real estate with an SBA 7(a) loan, the SBA requires the small business to occupy at least 51% of the property if existing, or 60% if new construction, for its operations. This requirement ensures the loan primarily supports the business, not just investment property.
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.
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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