Glossary · Reading the business
In short
This is a measure of a business's net worth, excluding intangible assets like goodwill. Lenders use it to assess financial health, particularly for businesses seeking larger loans.
For larger SBA 7(a) loans (over $5 million), the SBA has a "tangible net worth" size standard in addition to employee and revenue standards. You need to ensure the target business, plus any affiliates, meets this if you're pursuing a larger deal.
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.
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