{"ok":true,"canonical_url":"https://dealroom.so/glossary/draw","api_url":"https://dealroom.so/api/public/glossary/draw","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":"draw","term":"Draw","group":"Reading the business","definition":"Money taken out of a business by its owner, often for personal use, especially in partnerships or sole proprietorships. Buyers care because it directly reduces the business's available cash and needs to be accounted for when analyzing profitability.","what_it_means":"Similar to owner's salary, draws are usually \"added back\" to calculate SDE or EBITDA when underwriting an SBA loan. You need to identify if these draws were legitimate business expenses or personal distributions, as they affect the true profitability you can expect.","url":"https://dealroom.so/glossary/draw","official_sources":[],"related":[{"slug":"owner-s-salary","term":"Owner's salary","url":"https://dealroom.so/glossary/owner-s-salary"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"How does a lender verify equity injection from a personal line of credit that is not fully drawn?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-from-a-personal-line-of-credit-that-is-not-fully"}]},"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 — Draw","url":"https://dealroom.so/glossary/draw","source_type":"DealRoom Data"}}