Glossary · Reading the business
In short
This calculation projects the business's future cash flow to see if it can afford the new loan payments. It tells you if the business generates enough profit to cover all its debt obligations after you buy it.
Lenders use this to assess repayment capacity for your SBA loan. You'll need to understand the assumptions behind the pro forma, especially any add-backs or projected growth, to ensure they're realistic and not overly optimistic. Your deal hinges on the business's ability to service this debt.
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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