Glossary · Reading the business
In short
This is the estimated period an asset is expected to be productive and generate revenue for a business. It's distinct from its physical life.
When evaluating assets, especially equipment or leasehold improvements, consider their useful economic life. This impacts their value as collateral and helps you project future capital expenditures. The SBA often uses this to determine maximum loan terms for certain assets.
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.
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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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