Glossary · Reading the business
In short
This is a business valuation method that estimates value based on the business's expected future income or cash flow. It's widely used for operating businesses.
The SBA and lenders heavily rely on the Income Approach to determine the Fair Market Value of a business, particularly through discounted cash flow or capitalization of earnings methods. This directly impacts how much the SBA will finance.
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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