Glossary · Reading the business
In short
The compensation an owner takes from the business for their work. Buyers care because this amount needs to be adjusted when evaluating the business's true profitability for a new owner.
For an SBA loan, the lender will "add back" the seller's owner salary when calculating Seller's Discretionary Earnings (SDE) or EBITDA. You'll need to factor in a reasonable replacement salary for yourself when projecting your post-acquisition cash flow to ensure the business can support it.
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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