Glossary · Reading the business
In short
These are the historical periods (e.g., 3 years) for which lenders examine a business's financial statements to assess performance and trends. As a buyer, you care because they show the business's track record.
For an SBA 7(a) acquisition, lenders typically require at least three years of financial statements and tax returns. This historical data is critical for calculating key metrics like SDE and EBITDA, and for identifying any significant add-backs or anomalies. You need to scrutinize these periods to understand the true underlying profitability before you buy.
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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