Glossary · Reading the business
In short
This refers to where the money will come from to pay back the SBA loan. As a buyer, you need to be sure the business generates enough profit to cover all loan payments.
Lenders primarily look at the business's historical cash flow and your projections to determine if it can support the debt. They'll also consider your personal income if it's a significant part of the global cash flow. Strong, consistent cash flow is critical for loan approval and your ability to succeed.
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.
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