Glossary · Reading the business
In short
Profitability measures a business's ability to generate earnings after covering all expenses. It's a key indicator of financial health and your ability to repay a loan.
Lenders will heavily scrutinize the target business's profitability through its Profit and Loss Statements and tax returns, looking at metrics like SDE and EBITDA. Your loan repayment capacity is directly tied to the business's consistent profits. Project future profitability realistically in your business plan.
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.
Free · No documents · Usually same-day