Glossary · Reading the business
Economic index
In short
An economic index is a statistical measure that tracks changes in a specific sector or the overall economy, such as GDP or consumer confidence. These indices help you understand the broader market conditions affecting the business you're buying.
What it means in a deal
While not directly part of the loan application, understanding relevant economic indices helps you assess the industry and market conditions a target business operates within. For example, if you're buying a construction business, housing starts (an economic index) are highly relevant. Use these to inform your due diligence and cash flow projections.
Related terms
Common questions about Economic index
- How does a lender determine affiliation for size purposes when evaluating common economic dependence?
- Can I use a conditional grant from a local economic development agency as equity?
- Are SBA 7(a) loan interest rates typically fixed or variable, and what base rate index is commonly used?
- Under what conditions does a shared economic interest trigger affiliation for SBA size standard purposes?
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.
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
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.