SBA Annual Financial Review is a critical process undertaken by Small Business Administration (SBA) to assess the financial health and stability of businesses within their purview annually. This meticulous review goes beyond a mere examination of balance sheets and income statements; it looks at various financial markers that provide insights into a company’s financial position, performance over the year, and potential risks.
These reviews are significant for SBA-backed loans, as they help SBA to ascertain the creditworthiness of a business and its capacity to repay the loan. The process involves an analysis of financial ratios, audit results, operational data, and management performance. It is through SBA Annual Financial Review that the agency ensures that small businesses benefiting from their programs are financially viable and continue to contribute to the economy.
