Glossary · Reading the business
In short
This is what's left of a business's revenue after all expenses, including taxes, are paid. It's a key indicator of a business's true profitability and financial health for a buyer.
When evaluating a business, net profit is a core metric. However, for an SBA loan, lenders often focus on SDE or EBITDA, which adjust for owner compensation and non-cash expenses, providing a clearer picture of the business's cash flow available for debt service. Always look beyond stated net profit.
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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