Glossary · Reading the business
In short
A forecast of a business's future financial performance, including revenue, expenses, and cash flow. Lenders heavily rely on these to assess the business's ability to repay your SBA loan.
For your SBA loan application, you'll need detailed projections, typically for 1-3 years, showing how the business will perform under your ownership. These must be realistic and supported by market analysis and historical performance. Your lender uses these to confirm your repayment capacity and calculate your DSCR.
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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