Glossary · Reading the business
In short
This is a business's true operating cash flow, adjusted for non-recurring items and discretionary owner expenses. It's the primary metric used for valuing a small business.
Your lender will use normalized cash flow to assess the business's ability to repay the SBA loan. You'll work with your M&A advisor to identify appropriate 'add-backs' to the Income Statements to arrive at this figure, which is crucial for determining loan viability.
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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