In by Key Commercial Capital

As part of the SBA business loan process, applicants need to submit projected income and cash flow statements for at least one year (sometimes two or three years).  Underwriters evaluate these projections to estimate when positive cash flow can be shown by the business. Showing positive cash flow is important within the first several months of loan funding.  Projections with early positive cash flow will look favorable, mitigating the risk to the lending institution, hence making a loan application more likely to be approved.