Glossary · Your money in the deal
Net Worth
In short
The total value of an individual's or company's assets minus their liabilities. For a buyer, it's a key indicator of personal financial strength and eligibility for an SBA loan.
What it means in a deal
Your personal financial statement will detail your net worth, which lenders review as part of your overall creditworthiness. A strong personal net worth, along with sufficient liquidity, helps assure the lender you can withstand financial shocks. Ensure your financial statement is accurate and fully supported by documentation.
Official sources
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.
Related terms
Common questions about Net Worth
- What is the specific personal net worth threshold that triggers a personal guaranty requirement for an owner?
- Can I use an SBA 7(a) loan to purchase a business with a negative net worth?
- Can an SBA 7(a) loan be used to purchase a business with a negative net worth?
- Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?
- What if my business has a negative net worth? Can I still get an SBA 7(a) loan?
- What is the maximum net worth requirement for a business to qualify as "small" for a 7(a) loan?
Defined by CapBench 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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