Glossary · Reading the business
Opening Balance Sheet
In short
The balance sheet of the acquired business immediately after the sale, reflecting new ownership, purchase price allocation, and the new loan. It's a snapshot of the business's financial health post-acquisition.
What it means in a deal
This document is crucial for understanding the financial structure of the business you now own. It shows how the purchase price was allocated among assets and liabilities, including goodwill and your new SBA loan. Ensure it accurately reflects the deal terms and provides a solid foundation for future financial reporting.
Related terms
Common questions about Opening Balance Sheet
- Can an SBA 7(a) loan be used for business expansion, like opening a new location?
- Is an SBA 7(a) loan suitable for growing my existing business or opening a second location?
- What is the maximum total outstanding balance for all SBA 7(a) loans to one business?
- What is the prepayment penalty calculation for a 7(a) loan with a principal balance exceeding $500,000?
- Can a personal guaranty be released if the business performs exceptionally well and the loan balance is significantly reduced?
- Is there a prepayment penalty for early repayment of my SBA 7(a) loan if the principal balance is under $500,000?
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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