Glossary · Reading the business
Viable Going Concern
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.
What it means in a deal
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.
Official sources
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.
Related terms
Common questions about Viable Going Concern
- What if a franchise agreement contains provisions for indemnification that concern the SBA?
- What if the acquired business's real estate has an environmental concern requiring remediation?
- What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?
- How does the SBA calculate the annual service fee (on-going guaranty fee) charged to the lender for a 7(a) loan?
- What if the acquired business property has existing environmental concerns, like old fuel tanks?
- What are a lender's responsibilities concerning the proper use of 7(a) loan proceeds by the borrower?
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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