{"ok":true,"canonical_url":"https://dealroom.so/glossary/sde","api_url":"https://dealroom.so/api/public/glossary/sde","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":"sde","term":"SDE","aka":"seller's discretionary earnings","group":"Reading the business","definition":"EBITDA plus the owner's salary and perks. For small businesses, this is the truest picture of what the business pays its owner.","what_it_means":"SDE is the metric most commonly used for small businesses (typically under $2M in earnings) because the owner is usually also the operator. By adding back the owner's salary on top of EBITDA, you get a view of the total economic benefit to whoever is running the company. Lenders look at SDE when sizing the DSCR for small deals, because it tells them whether the business generates enough to both service the debt and pay you a living wage.","url":"https://dealroom.so/glossary/sde","official_sources":[],"related":[{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"multiple","term":"Multiple","url":"https://dealroom.so/glossary/multiple"}],"related_questions":[]},"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 — SDE","url":"https://dealroom.so/glossary/sde","source_type":"DealRoom Data"}}