Glossary · Reading the business
In short
The Profit & Loss statement shows a business's revenues, expenses, and net profit or loss over a period. It's critical for buyers to understand a company's historical financial performance and profitability.
Your SBA lender will heavily rely on the P&L to assess the business's cash flow and repayment capacity. You'll analyze several years of P&Ls during due diligence, often with "add-backs" to reflect owner earnings. Verify these numbers with tax returns and bank statements.
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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