Glossary · Reading the business
In short
An asset that is free and clear of any liens, mortgages, or other legal claims. It can be pledged as collateral for a new loan.
Lenders look for unencumbered assets, both business and personal, to secure the SBA loan, especially if there's a collateral shortfall. If the business owns property or equipment without existing debt, it can be used to meet collateral requirements. Ensure the seller isn't hiding liens.
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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