Glossary · Reading the business
In short
An asset you own outright, with no liens or claims against it. For a buyer, these assets can serve as collateral for an SBA loan, strengthening your financing application.
Lenders prefer collateral that is "unencumbered," meaning it's free of prior debt or security interests. Identify these in the seller's books; they can significantly improve your loan-to-value ratio, especially if the business itself has a collateral shortfall. You may need an appraisal to confirm value.
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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