Glossary · Reading the business
In short
The process of determining the economic value of a business. For a buyer, a strong valuation justifies the purchase price and supports the SBA loan amount.
For SBA loans over $250,000, an independent business appraisal is required. This valuation ensures the purchase price is fair and provides the lender with confidence in the asset's underlying value. Understand the valuation methods used, like SDE or EBITDA multiples, to challenge or confirm the price.
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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