{"ok":true,"canonical_url":"https://dealroom.so/glossary/future-projections","api_url":"https://dealroom.so/api/public/glossary/future-projections","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":"future-projections","term":"Future Projections","group":"Reading the business","definition":"Your best estimate of the business's financial performance after you take over. Lenders use these to gauge your ability to repay the SBA loan under your management.","what_it_means":"You'll provide detailed future projections, typically for 1-2 years, including projected P&L statements and cash flow. These should be realistic and justifiable, demonstrating sufficient cash flow to cover debt service and your living expenses. Base them on historical earnings, your business plan, and market analysis, showing how you expect to perform.","url":"https://dealroom.so/glossary/future-projections","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":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"},{"slug":"historical-earnings","term":"Historical Earnings","url":"https://dealroom.so/glossary/historical-earnings"},{"slug":"market-analysis","term":"Market analysis","url":"https://dealroom.so/glossary/market-analysis"}],"related_questions":[{"question":"How does a lender evaluate the reasonableness of a borrower's projections for future revenue and cash flow?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-evaluate-the-reasonableness-of-a-borrower-s-projections-for-future-reven"},{"question":"How does the SBA evaluate the reasonableness of a borrower's projections for future revenue and cash flow?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-reasonableness-of-a-borrower-s-projections-for-future-revenu"},{"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":"Can future cash flow or profits from the acquired business count as equity injection?","url":"https://dealroom.so/for-lenders/questions/can-future-cash-flow-or-profits-from-the-acquired-business-count-as-equity-injection"},{"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":"How does an SBA 7(a) loan affect my ability to get future business financing?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-affect-my-ability-to-get-future-business-financing"}]},"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 — Future Projections","url":"https://dealroom.so/glossary/future-projections","source_type":"DealRoom Data"}}