Glossary · Reading the business
In short
The past financial performance of the business, usually measured over several years. This data is critical for assessing the business's stability and cash flow before you buy it.
Lenders analyze 3-5 years of historical earnings, primarily using tax returns and profit & loss statements, to understand the business's ability to repay the loan. Focus on consistent profitability and identify any significant one-time events or trends that might impact future performance. These figures form the basis for your future projections and cash flow analysis.
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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