Glossary · Reading the business
In short
This is the income left over after paying all essential expenses and taxes. For a small business owner relying on the business for salary, it's about how much the business can actually pay you.
Lenders often look at the owner's personal disposable income, or lack thereof, when evaluating a borrower's ability to withstand minor business fluctuations. If your personal finances are tight, it signals higher risk. Ensure your personal financial statement (PFS) reflects a healthy cushion, or explain how the business's cash flow after debt service will cover your needs.
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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