Glossary · Reading the business
In short
The projected net cash generated by the business after all operating expenses, debt service, and owner compensation are paid, once you take over. This is the ultimate measure of the business's ability to support the loan and your salary.
This is the most critical financial projection. You need to model the business's cash flow realistically, accounting for new debt payments, your salary, and any changes you anticipate. Lenders use Debt Service Coverage Ratio (DSCR) to ensure the business can comfortably make loan payments.
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.
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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