Glossary · Reading the business
In short
An asset that can be quickly converted to cash (liquid) and is not pledged as collateral for any debt (unencumbered). Lenders look for these to assess your personal financial strength and capacity for equity injection.
Your lender will review your personal financial statement for these assets, such as cash in checking/savings, brokerage accounts, or unpledged marketable securities. They indicate your personal liquidity and serve as a crucial source for your equity injection or a fallback for working capital, demonstrating your commitment to the deal.
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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