{"ok":true,"canonical_url":"https://dealroom.so/glossary/financial-statement","api_url":"https://dealroom.so/api/public/glossary/financial-statement","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-statement","term":"Financial Statement","group":"Reading the business","definition":"These are formal records of a business's financial activities, like Profit & Loss statements and Balance Sheets. They show you the historical performance and health of the business.","what_it_means":"Lenders rely heavily on these to assess the business's repayment capacity. You'll need to scrutinize multiple years of these during due diligence, often with your accountant, to verify the business's true profitability and assets.","url":"https://dealroom.so/glossary/financial-statement","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"}],"related_questions":[{"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"},{"question":"How important is my personal financial statement for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-important-is-my-personal-financial-statement-for-an-sba-7-a-loan-application"},{"question":"What is a 'personal financial statement' and why is it needed for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-a-personal-financial-statement-and-why-is-it-needed-for-an-sba-7-a-loan"},{"question":"What does a 'personal financial statement' entail and why is it needed for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-does-a-personal-financial-statement-entail-and-why-is-it-needed-for-an-sba-7-a-loan"},{"question":"When is a personal financial statement (SBA Form 413) required for non-owner guarantors of a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-a-personal-financial-statement-sba-form-413-required-for-non-owner-guarantors-of-a"},{"question":"What if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-financial-statement-shows-low-liquidity-but-i-have-a-strong-credit-sco"}]},"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 Statement","url":"https://dealroom.so/glossary/financial-statement","source_type":"DealRoom Data"}}