{"ok":true,"canonical_url":"https://dealroom.so/glossary/annual-revenue","api_url":"https://dealroom.so/api/public/glossary/annual-revenue","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"annual-revenue","term":"Annual revenue","group":"Reading the business","definition":"The total income a business generates from its primary operations over a 12-month period, before any expenses are deducted. This is a key indicator of a business's size and ability to generate sales.","what_it_means":"Lenders use annual revenue to gauge a business's health and determine if it meets SBA size standards. You'll analyze historical annual revenue trends to understand growth, stability, and seasonality. Verify these figures against tax returns and bank statements during due diligence.","url":"https://dealroom.so/glossary/annual-revenue","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"receipts","term":"Receipts","url":"https://dealroom.so/glossary/receipts"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"irs-transcripts","term":"IRS transcripts (4506-T)","url":"https://dealroom.so/glossary/irs-transcripts"}],"related_questions":[{"question":"How does declining revenue during due diligence impact loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-declining-revenue-during-due-diligence-impact-loan-approval"},{"question":"Does my business need to show consistent revenue over several years?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-show-consistent-revenue-over-several-years"},{"question":"When is the annual service fee waived for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-the-annual-service-fee-waived-for-a-7-a-loan"},{"question":"What if the acquired business primarily generates revenue from passive rental income?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-primarily-generates-revenue-from-passive-rental-income"},{"question":"What if my business is seasonal, and revenue fluctuates throughout the year?","url":"https://dealroom.so/sba-loans/basics/what-if-my-business-is-seasonal-and-revenue-fluctuates-throughout-the-year"},{"question":"Are there any annual or ongoing fees for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/are-there-any-annual-or-ongoing-fees-for-an-sba-7-a-loan"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Annual revenue","url":"https://dealroom.so/glossary/annual-revenue","source_type":"DealRoom Data"}}