Glossary · Reading the business
Profit & Loss(P&L)
In short
The Profit & Loss statement shows a business's revenues, expenses, and net profit or loss over a period. It's critical for buyers to understand a company's historical financial performance and profitability.
What it means in a deal
Your SBA lender will heavily rely on the P&L to assess the business's cash flow and repayment capacity. You'll analyze several years of P&Ls during due diligence, often with "add-backs" to reflect owner earnings. Verify these numbers with tax returns and bank statements.
Related terms
Common questions about Profit & Loss
- Can a non-profit organization with a for-profit subsidiary be eligible for a 7(a) loan?
- What steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?
- What are the specific requirements for naming the lender as the loss payee on a life insurance policy collateral assignment?
- What specific steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?
- Can a non-profit organization receive an SBA 7(a) loan?
- Does my business need to be a for-profit company to qualify?
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.