Glossary · Reading the business
In short
Financial spreads are a detailed breakdown and analysis of a business's financial statements over several years, often standardized by lenders. They help you and your lender understand the company's historical performance, trends, and financial health.
When buying a business with a 7(a) loan, your lender will "spread" the seller's financial statements (P&Ls, Balance Sheets) to identify normalizations and calculate key ratios like DSCR. This process helps confirm the business's ability to service the new debt. Review these spreads carefully with your advisor to ensure they reflect the true financial picture.
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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