{"ok":true,"canonical_url":"https://dealroom.so/glossary/profit-loss","api_url":"https://dealroom.so/api/public/glossary/profit-loss","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":"profit-loss","term":"Profit & Loss","aka":"P&L","group":"Reading the business","definition":"The Profit & Loss statement shows a business's revenues, expenses, and net profit or loss over a period. It's critical for buyers to understand a company's historical financial performance and profitability.","what_it_means":"Your SBA lender will heavily rely on the P&L to assess the business's cash flow and repayment capacity. You'll analyze several years of P&Ls during due diligence, often with \"add-backs\" to reflect owner earnings. Verify these numbers with tax returns and bank statements.","url":"https://dealroom.so/glossary/profit-loss","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"question":"Can a non-profit organization with a for-profit subsidiary be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-non-profit-organization-with-a-for-profit-subsidiary-be-eligible-for-a-7-a-loan"},{"question":"What steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-steps-must-a-lender-take-to-mitigate-loss-during-loan-liquidation-before-submitting-a"},{"question":"What are the specific requirements for naming the lender as the loss payee on a life insurance policy collateral assignment?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-naming-the-lender-as-the-loss-payee-on-a-life-insur"},{"question":"What specific steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-specific-steps-must-a-lender-take-to-mitigate-loss-during-loan-liquidation-before-sub"},{"question":"Can a non-profit organization receive an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-non-profit-organization-receive-an-sba-7-a-loan"},{"question":"Does my business need to be a for-profit company to qualify?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-be-a-for-profit-company-to-qualify"}]},"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 — Profit & Loss","url":"https://dealroom.so/glossary/profit-loss","source_type":"DealRoom Data"}}