Glossary · Reading the business
In short
A projection of a business's future cash inflows and outflows, assuming certain events like an acquisition. It helps evaluate the business's ability to generate future cash to service debt.
Your lender will require a pro forma cash flow analysis, often covering several years post-acquisition. This projects how the business will perform under your ownership, including debt service. Ensure your projections are realistic and supported by your business plan, as lenders heavily rely on this to assess your repayment capacity and the viability of the deal.
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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