{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-benefit","api_url":"https://dealroom.so/api/public/glossary/owner-benefit","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":"owner-benefit","term":"Owner benefit","group":"Reading the business","definition":"Non-essential expenses paid by the business that primarily benefit the owner, such as personal car leases, travel, or discretionary salaries. These are added back to show true profitability.","what_it_means":"When evaluating a small business, you'll \"add back\" owner benefits to calculate the Seller's Discretionary Earnings (SDE) or Owner Earnings. This adjusted profit figure gives a clearer picture of the business's true cash flow and its ability to cover your debt service and provide you a salary.","url":"https://dealroom.so/glossary/owner-benefit","official_sources":[],"related":[{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"}],"related_questions":[{"question":"How does the SBA guarantee primarily benefit me as the business owner?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-guarantee-primarily-benefit-me-as-the-business-owner"},{"question":"How does the SBA guarantee truly benefit me as the borrower?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-guarantee-truly-benefit-me-as-the-borrower"},{"question":"What is the main benefit of an SBA 7(a) loan over a traditional bank loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-main-benefit-of-an-sba-7-a-loan-over-a-traditional-bank-loan"},{"question":"What is the main benefit of an SBA 7(a) loan compared to a conventional bank loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-main-benefit-of-an-sba-7-a-loan-compared-to-a-conventional-bank-loan"},{"question":"What are the main benefits of an SBA 7(a) loan for a small business owner?","url":"https://dealroom.so/sba-loans/basics/what-are-the-main-benefits-of-an-sba-7-a-loan-for-a-small-business-owner"},{"question":"What benefit does a bank get by offering an SBA 7(a) loan instead of its own product?","url":"https://dealroom.so/sba-loans/basics/what-benefit-does-a-bank-get-by-offering-an-sba-7-a-loan-instead-of-its-own-product"}]},"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 — Owner benefit","url":"https://dealroom.so/glossary/owner-benefit","source_type":"DealRoom Data"}}