Glossary · Reading the business
In short
The total income a business generates from its primary operations over a 12-month period, before any expenses are deducted. This is a key indicator of a business's size and ability to generate sales.
Lenders use annual revenue to gauge a business's health and determine if it meets SBA size standards. You'll analyze historical annual revenue trends to understand growth, stability, and seasonality. Verify these figures against tax returns and bank statements during due diligence.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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