Glossary · Reading the business
In short
This is money paid out from the business's profits to its owners, distinct from salary or wages. It reduces the cash available to the business.
When analyzing a target business, scrutinize historical owner distributions. High or inconsistent distributions can indicate the seller extracted cash that otherwise would have stayed in the business, potentially inflating its apparent SDE or reducing available working capital. Factor these into your cash flow projections.
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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