Glossary · Reading the business
In short
A legal claim placed by a government entity (like the IRS) against a business's assets due to overdue taxes. These must be resolved before a business can be sold.
Unpaid tax liens are a major red flag and must be cleared before an SBA loan can close. The SBA requires all liens, including tax liens, to be resolved or subordinated. Your lender will perform lien searches and require IRS transcripts (Form 4506-T) to verify the business and seller are in good standing.
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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