Glossary · Reading the business
In short
This refers to business activities that involve a high degree of risk, like investing in volatile assets or real estate development for resale. The SBA generally does not lend to businesses primarily engaged in speculative activity.
If the target business's primary income comes from activities like buying and selling undeveloped land, or trading derivatives, it's likely an ineligible business for an SBA loan. Ensure the business's operations align with the NAICS code for an eligible industry.
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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