{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-draw","api_url":"https://dealroom.so/api/public/glossary/owner-draw","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-draw","term":"Owner draw","group":"Reading the business","definition":"Funds taken out of a business by its owner, typically from a sole proprietorship or partnership, for personal use. It's a key component of seller's discretionary earnings (SDE) and understanding the true owner benefit.","what_it_means":"When analyzing a business's financials, you'll see owner draws on the Profit and Loss Statement. These are usually \"added back\" to calculate SDE, giving you a clearer picture of the actual cash flow available to a new owner. This figure is crucial for determining your ability to service debt.","url":"https://dealroom.so/glossary/owner-draw","official_sources":[],"related":[{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"}],"related_questions":[{"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"},{"question":"How is prior owner debt converted to equity treated for injection purposes?","url":"https://dealroom.so/for-lenders/questions/how-is-prior-owner-debt-converted-to-equity-treated-for-injection-purposes"}]},"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 draw","url":"https://dealroom.so/glossary/owner-draw","source_type":"DealRoom Data"}}