{"ok":true,"canonical_url":"https://dealroom.so/glossary/projection","api_url":"https://dealroom.so/api/public/glossary/projection","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":"projection","term":"Projection","aka":"Financial projections","group":"Reading the business","definition":"A forecast of a business's future financial performance, including revenue, expenses, and cash flow. Lenders heavily rely on these to assess the business's ability to repay your SBA loan.","what_it_means":"For your SBA loan application, you'll need detailed projections, typically for 1-3 years, showing how the business will perform under your ownership. These must be realistic and supported by market analysis and historical performance. Your lender uses these to confirm your repayment capacity and calculate your DSCR.","url":"https://dealroom.so/glossary/projection","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":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"question":"If the acquired business has a recent history of losses, but a strong projection under new ownership, can it still be approved?","url":"https://dealroom.so/sba-7a/questions/if-the-acquired-business-has-a-recent-history-of-losses-but-a-strong-projection-under-new-"},{"question":"Can incomplete or inconsistent financial projections lead to an SBA 7(a) loan denial?","url":"https://dealroom.so/sba-7a/questions/can-incomplete-or-inconsistent-financial-projections-lead-to-an-sba-7-a-loan-denial"},{"question":"Are there specific criteria for my business plan and financial projections for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-criteria-for-my-business-plan-and-financial-projections-for-an-acquisit"},{"question":"What constitutes a failure of 'prudent lending standards' regarding financial projections for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-failure-of-prudent-lending-standards-regarding-financial-projections-fo"},{"question":"Are there any restrictions on the use of cash flow projections for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/are-there-any-restrictions-on-the-use-of-cash-flow-projections-for-an-sba-7-a-acquisition-"},{"question":"How does a lender evaluate the reasonableness of a borrower's projections for future revenue and cash flow?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-evaluate-the-reasonableness-of-a-borrower-s-projections-for-future-reven"}]},"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 — Projection","url":"https://dealroom.so/glossary/projection","source_type":"DealRoom Data"}}