Glossary · Reading the business
In short
The complete sum of all funds needed to acquire a business, including the purchase price, working capital, closing costs, and any required renovations or fees. This is the full financing picture.
When applying for a 7(a) loan, you'll need to clearly outline your total project cost. This includes the business purchase price, real estate (if applicable), inventory, working capital, lender fees, and SBA guaranty fees. This total amount determines the loan size needed and your required equity injection.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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