{"ok":true,"canonical_url":"https://dealroom.so/glossary/business-projection","api_url":"https://dealroom.so/api/public/glossary/business-projection","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":"business-projection","term":"Business Projection","group":"Reading the business","definition":"This is a forecast of a business's future financial performance, including revenue, expenses, and profit. It's crucial for you and the lender to assess the business's future viability.","what_it_means":"For an SBA loan, you'll need a solid business projection to show how the acquired business will generate enough cash flow to cover debt service and provide you with income. Lenders scrutinize these, so ensure yours are realistic and well-supported by market analysis.","url":"https://dealroom.so/glossary/business-projection","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"cash-flow-after-debt-service","term":"Cash flow after debt service","url":"https://dealroom.so/glossary/cash-flow-after-debt-service"}],"related_questions":[{"question":"If the acquired business has a recent history of losses, but a strong projection under new ownership, can it still be approved?","url":"https://dealroom.so/sba-7a/questions/if-the-acquired-business-has-a-recent-history-of-losses-but-a-strong-projection-under-new-"},{"question":"Are there specific criteria for my business plan and financial projections for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-criteria-for-my-business-plan-and-financial-projections-for-an-acquisit"},{"question":"What common indicators in a business's financial projections would signal a failure to meet prudent lending standards?","url":"https://dealroom.so/for-lenders/questions/what-common-indicators-in-a-business-s-financial-projections-would-signal-a-failure-to-mee"},{"question":"Can a seller note be repaid early if the business significantly outperforms projections and the SBA loan is current?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-repaid-early-if-the-business-significantly-outperforms-projections-an"},{"question":"Do I need to create a formal business plan with detailed projections to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/do-i-need-to-create-a-formal-business-plan-with-detailed-projections-to-apply-for-an-sba-7"},{"question":"How does the SBA's 'prudent lending standards' apply to the evaluation of working capital projections for a new business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-s-prudent-lending-standards-apply-to-the-evaluation-of-working-capital-pr"}]},"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 — Business Projection","url":"https://dealroom.so/glossary/business-projection","source_type":"DealRoom Data"}}