{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-s-withdrawals","api_url":"https://dealroom.so/api/public/glossary/owner-s-withdrawals","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-s-withdrawals","term":"Owner's withdrawals","group":"Reading the business","definition":"These are funds taken out of a business by its owner, not as salary or dividends, but as direct draws. They are critical for understanding how much cash the business truly generates for an owner.","what_it_means":"When evaluating a business, owner's withdrawals are a key 'add-back' used to calculate Seller's Discretionary Earnings (SDE). They represent cash available to a working owner. Ensure you get clear documentation of all withdrawals during due diligence to accurately assess the business's true profitability and your potential income.","url":"https://dealroom.so/glossary/owner-s-withdrawals","official_sources":[],"related":[{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"year-end-financial-statements","term":"Year-end financial statements","url":"https://dealroom.so/glossary/year-end-financial-statements"}],"related_questions":[{"question":"How does a lender confirm an owner's U.S. citizenship if they were born in a U.S. territory or abroad to U.S. parents?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-confirm-an-owner-s-u-s-citizenship-if-they-were-born-in-a-u-s-territory-"},{"question":"How does the SBA verify a non-owner investor's funds used for equity injection?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-a-non-owner-investor-s-funds-used-for-equity-injection"},{"question":"Can a business owner's personal assets be used as collateral if business assets are limited?","url":"https://dealroom.so/sba-loans/basics/can-a-business-owner-s-personal-assets-be-used-as-collateral-if-business-assets-are-limite"},{"question":"What specific documentation is required to verify a non-citizen owner's lawful permanent resident status?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-a-non-citizen-owner-s-lawful-permanent-r"},{"question":"How does the SBA handle a partner buyout where the remaining owner's experience is limited?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-handle-a-partner-buyout-where-the-remaining-owner-s-experience-is-limited"},{"question":"What specific documentation is required for a lender to verify U.S. citizenship if an owner was born in a U.S. territory or abroad to U.S. parents?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-for-a-lender-to-verify-u-s-citizenship-if-an-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's withdrawals","url":"https://dealroom.so/glossary/owner-s-withdrawals","source_type":"DealRoom Data"}}