Glossary · Reading the business
In short
This refers to the overall health and stability of the business's finances, including its ability to generate profits, manage debt, and maintain sufficient cash flow.
Lenders assess a business's financial strength to determine its ability to repay the SBA loan. They'll scrutinize historical Profit and Loss Statements, Balance Sheets, and cash flow projections, looking at metrics like DSCR and overall leverage. Strong financial strength is critical for loan approval and for your success post-acquisition.
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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