Glossary · People and paperwork
In short
These are the financial reports a business submits to the government, like federal and state income tax returns. As a buyer, you need to review past filings to verify the business's reported income and expenses.
Lenders require several years of business tax returns and personal tax returns from the seller to underwrite the loan. You'll use these, alongside other financial statements, during due diligence to confirm the accuracy of the seller's profit claims. Always compare tax filings with internal P&L 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.
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