{"ok":true,"canonical_url":"https://dealroom.so/glossary/net-income-after-federal-income-taxes","api_url":"https://dealroom.so/api/public/glossary/net-income-after-federal-income-taxes","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"net-income-after-federal-income-taxes","term":"Net Income After Federal Income Taxes","group":"Reading the business","definition":"The ultimate profit a business makes after all expenses, including federal income taxes, have been deducted. It's the bottom line on the Profit & Loss Statement.","what_it_means":"While lenders and buyers often focus on SDE or EBITDA for valuation, the net income after taxes is what the business legally earned and what's available for distribution or reinvestment after the tax burden. It's a key figure on the P&L and helps confirm the business's actual profitability, though adjustments (add-backs) are usually applied to get to SDE.","url":"https://dealroom.so/glossary/net-income-after-federal-income-taxes","official_sources":[],"related":[{"slug":"profit-loss-statement","term":"Profit & Loss Statement","url":"https://dealroom.so/glossary/profit-loss-statement"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"}],"related_questions":[{"question":"What is the impact if a 7(a) loan borrower becomes delinquent on their federal taxes after loan closing?","url":"https://dealroom.so/for-lenders/questions/what-is-the-impact-if-a-7-a-loan-borrower-becomes-delinquent-on-their-federal-taxes-after-"},{"question":"What happens if a business has outstanding federal taxes when applying for an SBA loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-a-business-has-outstanding-federal-taxes-when-applying-for-an-sba-loan"},{"question":"What happens if my business has outstanding federal taxes, like IRS debt, when applying for an SBA loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-has-outstanding-federal-taxes-like-irs-debt-when-applying-for-"},{"question":"Do unfiled tax returns or overdue taxes prevent SBA approval?","url":"https://dealroom.so/sba-7a/questions/do-unfiled-tax-returns-or-overdue-taxes-prevent-sba-approval"},{"question":"What is the specific personal net worth threshold that triggers a personal guaranty requirement for an owner?","url":"https://dealroom.so/sba-7a/questions/what-is-the-specific-personal-net-worth-threshold-that-triggers-a-personal-guaranty-requir"},{"question":"Can I use an SBA 7(a) loan to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-a-business-with-a-negative-net-worth"}]},"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 — Net Income After Federal Income Taxes","url":"https://dealroom.so/glossary/net-income-after-federal-income-taxes","source_type":"DealRoom Data"}}