Glossary · Reading the business
Cash flow projection
In short
A cash flow projection estimates the future movement of cash in and out of the business. It's crucial for showing a lender the business can repay the loan.
What it means in a deal
When applying for an SBA 7(a) loan, you'll submit detailed cash flow projections to demonstrate the business's ability to generate sufficient funds to cover debt service and operating expenses. Lenders scrutinize these to assess repayment capacity and the viability of your business plan.
Official sources
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.
Related terms
Common questions about Cash flow projection
- Are there any restrictions on the use of cash flow projections for an SBA 7(a) acquisition loan?
- How does a lender evaluate the reasonableness of a borrower's projections for future revenue and cash flow?
- How does the SBA evaluate the reasonableness of a borrower's projections for future revenue and cash flow?
- How does a lender evaluate the reasonableness of a borrower's cash flow projections for a 7(a) loan approval?
- Can future cash flow or profits from the acquired business count as equity injection?
- How can an SBA 7(a) loan help with ongoing cash flow for my business?
Defined by CapBench 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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