Glossary · Reading the business
In short
This includes past Profit and Loss Statements, Balance Sheets, and tax returns that show how the business has performed financially. Lenders rely on this to assess the business's stability and repayment capacity.
You'll need at least three years of business tax returns and interim financial statements for an SBA loan application. Scrutinize this data during due diligence to verify revenue, expenses, and profitability, looking for trends and potential red flags before the lender does.
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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