{"ok":true,"canonical_url":"https://dealroom.so/glossary/historical-financial-data","api_url":"https://dealroom.so/api/public/glossary/historical-financial-data","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":"historical-financial-data","term":"Historical financial data","group":"Reading the business","definition":"This includes past Profit and Loss Statements, Balance Sheets, and tax returns that show how the business has performed financially. Lenders rely on this to assess the business's stability and repayment capacity.","what_it_means":"You'll need at least three years of business tax returns and interim financial statements for an SBA loan application. Scrutinize this data during due diligence to verify revenue, expenses, and profitability, looking for trends and potential red flags before the lender does.","url":"https://dealroom.so/glossary/historical-financial-data","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":"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":"tax-return","term":"Tax return","url":"https://dealroom.so/glossary/tax-return"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"How does the SBA evaluate the financial strength of a business with inconsistent historical profitability for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-evaluate-the-financial-strength-of-a-business-with-inconsistent-historica"},{"question":"How does a lender apply 'prudent lending standards' when evaluating a borrower's historical financial performance trends for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-apply-prudent-lending-standards-when-evaluating-a-borrower-s-historical-"},{"question":"What specific data fields in E-Tran are critical for accurate 7(a) loan authorization generation?","url":"https://dealroom.so/for-lenders/questions/what-specific-data-fields-in-e-tran-are-critical-for-accurate-7-a-loan-authorization-gener"},{"question":"What are the critical data fields in E-Tran that must precisely match SBA Form 1919 for approval?","url":"https://dealroom.so/for-lenders/questions/what-are-the-critical-data-fields-in-e-tran-that-must-precisely-match-sba-form-1919-for-ap"},{"question":"Can I get an SBA 7(a) loan if the business I'm buying has poor historical cash flow?","url":"https://dealroom.so/sba-7a/questions/can-i-get-an-sba-7-a-loan-if-the-business-i-m-buying-has-poor-historical-cash-flow"},{"question":"What if the business I'm acquiring has poor historical cash flow or declining revenues for the last two years?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-poor-historical-cash-flow-or-declining-revenues-for"}]},"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 — Historical financial data","url":"https://dealroom.so/glossary/historical-financial-data","source_type":"DealRoom Data"}}