Glossary · Reading the business
In short
This is a calculation used to determine the maximum loan term for an SBA loan, based on the average useful life of the assets being financed, weighted by their cost.
For a business acquisition, your lender calculates the Weighted Average Useful Life (WAUL) of all assets you're buying (equipment, inventory, goodwill, real estate). This calculation dictates the longest possible loan term, typically up to 10 years for a business-only purchase, or 25 years if significant real estate is included.
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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