Glossary · Reading the business
In short
A court decision against an individual or business that hasn't been paid or satisfied. This indicates a past legal financial obligation that remains outstanding.
An unresolved judgment against you, any Key Principal, or the business itself is a significant red flag for an SBA loan. Lenders will uncover these during due diligence and personal financial statement review. You'll need to satisfy or resolve any such judgments before loan closing, as they impact your creditworthiness and eligibility.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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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