Sources and uses

Definition

A one-page summary of a deal's total cost, the uses, set against where every dollar to close it comes from, the sources, which must balance to the dollar.

Why It Matters

Lenders and investors read this table first, because it shows at a glance whether the deal is fully funded and how much of the buyer's own cash is at risk. The SBA looks for its minimum equity injection here, and the mix of loan, seller note, and buyer equity sets both the day-one debt load and how much room a buyer has if the first year runs light.

In numbers: A $1M purchase plus $75k of working capital and $60k of costs is $1.135M of uses, funded by a $910k SBA loan, a $100k seller note, and $125k of equity, about 11% of the project.