Glossary · Reading the business
In short
These are taxes withheld from employee wages and employer contributions, covering Social Security, Medicare, and unemployment. Delinquent payroll taxes are a major red flag for lenders.
During due diligence, always verify the seller's payroll tax compliance. Unpaid payroll taxes create a direct liability for your acquired business and are a severe issue for SBA lenders. Request IRS transcripts (Form 941s) and ensure all payments are current.
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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