Glossary · Reading the business
In short
This refers to how well a business is doing financially, measured by its revenue, expenses, profits, and cash flow over time. It's the core of your due diligence.
Lenders analyze historical financial performance, typically for the past three years, to assess the business's ability to repay the SBA loan. You'll dig into the Profit and Loss Statements, Balance Sheets, and tax returns to verify the numbers and identify trends.
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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