Glossary · Reading the business
In short
This means the business is projected to generate enough cash flow to cover all operating expenses and debt payments, including your SBA loan. Lenders must determine if the business is economically feasible before approving a loan.
The lender evaluates the historical financials and your cash flow projection to confirm the business's repayment capacity. If the business's DSCR is too low, or if the cash flow after debt service is insufficient, the loan may not be considered economically feasible.
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.
Free · No documents · Usually same-day