Glossary · Reading the business
In short
A business that can operate profitably and generate sufficient cash flow to cover its expenses and debt obligations into the foreseeable future. Lenders look for this to ensure repayment capacity.
The SBA requires that the business you're buying be a "viable going concern" at the time of closing and projected to remain so. This means the numbers must show it can service the new debt and operate without immediate risk of failure. Your due diligence needs to confirm this operational health, not just past performance.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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