Glossary · Reading the business
In short
The ability of a business to consistently meet its financial obligations and withstand economic downturns. This is a key indicator of a healthy business and its capacity to repay an SBA loan.
You assess a target business's financial stability during due diligence by reviewing its Profit and Loss Statements, Balance Sheets, and cash flow. Look for consistent revenue, manageable debt, and positive cash flow after debt service. A strong history signals a reliable investment and better loan repayment capacity.
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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