Glossary · Reading the business
In short
Cash flow analysis examines a business's ability to generate enough cash to cover its expenses, including debt payments. It's the primary way lenders determine if the business can repay the loan.
Lenders scrutinize historical and projected cash flow to ensure the business can service the new SBA loan. They'll look at SDE, EBITDA, and apply add-backs to understand the true owner earnings. A strong DSCR is essential for approval, indicating sufficient cash flow after debt service.
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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