Glossary · Reading the business
Look-back periods
In short
These are the historical periods (e.g., 3 years) for which lenders examine a business's financial statements to assess performance and trends. As a buyer, you care because they show the business's track record.
What it means in a deal
For an SBA 7(a) acquisition, lenders typically require at least three years of financial statements and tax returns. This historical data is critical for calculating key metrics like SDE and EBITDA, and for identifying any significant add-backs or anomalies. You need to scrutinize these periods to understand the true underlying profitability before you buy.
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 Look-back periods
- What is the specific look-back period for an owner's prior felony conviction on SBA Form 1919?
- How far back does the SBA look into my personal credit history for a 7(a) loan application?
- What is the specific look-back period for prior ownership interests when determining affiliation for a 7(a) loan?
- What is the specific look-back period for criminal history when evaluating an applicant's eligibility for an SBA 7(a) loan?
- What are the typical repayment periods for an SBA 7(a) loan?
- What are the typical repayment periods for different types of SBA 7(a) loans?
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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