Glossary · Reading the business
In short
Financial projections are forward-looking estimates of a business's future revenue, expenses, and profits. They are critical for evaluating the potential success and repayment capacity of your acquisition.
Your lender will require detailed financial projections as part of your SBA 7(a) loan application. These must realistically demonstrate how the acquired business will generate enough cash flow to cover the new debt service, operating expenses, and provide a return for you. Be prepared to defend your assumptions.
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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