Glossary · Reading the business
In short
The assessment of whether a proposed business acquisition is practical and likely to succeed financially. Buyers care because it determines if the deal makes sense and if the business can support the new debt.
Your lender will conduct a thorough analysis of the project's feasibility, scrutinizing the business plan, financial projections, and your experience. You must present a compelling case that the business can generate enough cash flow to cover the SBA loan payments and provide you with a reasonable living.
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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