Glossary · Reading the business
In short
This measures the total debt a business or buyer carries relative to its equity or assets. High leverage means more risk for lenders, impacting your loan terms and approval.
Lenders assess your personal and business leverage. For a business acquisition, they look at the debt-to-equity ratio of the acquired business and your personal debt load. Too much debt can signal repayment risk, affecting your global cash flow and the bank's willingness to lend. Understand how the new SBA debt impacts this ratio.
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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