Glossary · Reading the business
In short
This is the business's capacity to generate enough cash flow to cover all its debt obligations, including your new SBA loan. Lenders scrutinize this to ensure the business can handle the loan payments.
Your lender will analyze historical cash flow, projected earnings, and your personal financial strength to determine if the business can service the new debt. They look at metrics like DSCR and global cash flow. If the business can't clearly cover the debt, your loan won't get approved.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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