Glossary · Reading the business
In short
This is the total sales generated by a business over a typical year, usually averaged over several years to smooth out fluctuations. It's a key metric for evaluating business size and performance.
The SBA uses average annual revenue over the last three fiscal years to determine if a business meets its size standard for eligibility. Lenders also use this, along with EBITDA or SDE, to assess the business's repayment capacity and assign a valuation. Always verify this figure with IRS transcripts.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
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.
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