{"ok":true,"canonical_url":"https://dealroom.so/glossary/administrative-expense","api_url":"https://dealroom.so/api/public/glossary/administrative-expense","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"administrative-expense","term":"Administrative expense","aka":"SG&A","group":"Reading the business","definition":"Costs incurred by a business that are not directly related to producing goods or services, such as office rent, salaries for support staff, and legal fees. These are overhead costs.","what_it_means":"When reviewing financial statements, analyze administrative expenses to see if they are reasonable and necessary for the business's operations. Identify any discretionary or owner-specific expenses that can be \"added back\" to increase owner earnings.","url":"https://dealroom.so/glossary/administrative-expense","official_sources":[],"related":[{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"}],"related_questions":[{"question":"How does business overhead expense insurance differ from key-person life insurance?","url":"https://dealroom.so/sba-7a/questions/how-does-business-overhead-expense-insurance-differ-from-key-person-life-insurance"},{"question":"How do shared administrative services, like HR or accounting, automatically trigger affiliation for size determination?","url":"https://dealroom.so/for-lenders/questions/how-do-shared-administrative-services-like-hr-or-accounting-automatically-trigger-affiliat"},{"question":"Does sharing common administrative services, like HR or accounting, automatically trigger affiliation for size determination?","url":"https://dealroom.so/for-lenders/questions/does-sharing-common-administrative-services-like-hr-or-accounting-automatically-trigger-af"},{"question":"What specific components are included in the lender's administrative fee for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-specific-components-are-included-in-the-lender-s-administrative-fee-for-an-sba-7-a-lo"},{"question":"What kind of everyday expenses can working capital cover?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-everyday-expenses-can-working-capital-cover"},{"question":"Which pre-closing business expenses can count towards equity?","url":"https://dealroom.so/sba-7a/questions/which-pre-closing-business-expenses-can-count-towards-equity"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Administrative expense","url":"https://dealroom.so/glossary/administrative-expense","source_type":"DealRoom Data"}}