{"ok":true,"canonical_url":"https://dealroom.so/glossary/financial-projection","api_url":"https://dealroom.so/api/public/glossary/financial-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":"financial-projection","term":"Financial projection","group":"Reading the business","definition":"A forecast of the business's future revenue, expenses, and profits. Lenders use this to assess your ability to repay the loan, especially for businesses with limited history or significant changes.","what_it_means":"For a business acquisition, you'll need to provide your lender with a financial projection showing how the business will perform post-acquisition. This should incorporate your operational plans and demonstrate sufficient cash flow after debt service to cover all loan payments and provide working capital.","url":"https://dealroom.so/glossary/financial-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":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"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":"Can incomplete or inconsistent financial projections lead to an SBA 7(a) loan denial?","url":"https://dealroom.so/sba-7a/questions/can-incomplete-or-inconsistent-financial-projections-lead-to-an-sba-7-a-loan-denial"},{"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 constitutes a failure of 'prudent lending standards' regarding financial projections for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-failure-of-prudent-lending-standards-regarding-financial-projections-fo"},{"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":"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":"What if my personal financial statement shows low liquid assets?","url":"https://dealroom.so/sba-loans/basics/what-if-my-personal-financial-statement-shows-low-liquid-assets"}]},"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 — Financial projection","url":"https://dealroom.so/glossary/financial-projection","source_type":"DealRoom Data"}}