{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-distribution","api_url":"https://dealroom.so/api/public/glossary/owner-distribution","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-distribution","term":"Owner Distribution","group":"Reading the business","definition":"This is money paid out from the business's profits to its owners, distinct from salary or wages. It reduces the cash available to the business.","what_it_means":"When analyzing a target business, scrutinize historical owner distributions. High or inconsistent distributions can indicate the seller extracted cash that otherwise would have stayed in the business, potentially inflating its apparent SDE or reducing available working capital. Factor these into your cash flow projections.","url":"https://dealroom.so/glossary/owner-distribution","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":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"Can life insurance be used to ensure fair distribution of assets among non-active heirs in a family business?","url":"https://dealroom.so/sba-7a/questions/can-life-insurance-be-used-to-ensure-fair-distribution-of-assets-among-non-active-heirs-in"},{"question":"Is it necessary to obtain separate life insurance policies for each owner in a multi-owner business?","url":"https://dealroom.so/sba-7a/questions/is-it-necessary-to-obtain-separate-life-insurance-policies-for-each-owner-in-a-multi-owner"},{"question":"Are non-owner spouses always required to personally guarantee SBA loans?","url":"https://dealroom.so/sba-7a/questions/are-non-owner-spouses-always-required-to-personally-guarantee-sba-loans"},{"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":"Are there any specific training or experience requirements for the business owner?","url":"https://dealroom.so/sba-loans/basics/are-there-any-specific-training-or-experience-requirements-for-the-business-owner"},{"question":"What does a 'personal guaranty' mean for me as a business owner?","url":"https://dealroom.so/sba-loans/basics/what-does-a-personal-guaranty-mean-for-me-as-a-business-owner"}]},"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 Distribution","url":"https://dealroom.so/glossary/owner-distribution","source_type":"DealRoom Data"}}