{"ok":true,"canonical_url":"https://dealroom.so/glossary/business-expense","api_url":"https://dealroom.so/api/public/glossary/business-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":"business-expense","term":"Business expense","group":"Reading the business","definition":"These are costs incurred by a business to generate revenue, ranging from salaries and rent to supplies and marketing. Understanding these is crucial for assessing profitability.","what_it_means":"During due diligence, scrutinize all business expenses on the Profit and Loss Statement. Look for \"add-backs\" that are truly discretionary or non-recurring to accurately calculate the business's true owner earnings and cash flow.","url":"https://dealroom.so/glossary/business-expense","official_sources":[],"related":[{"slug":"general-overhead","term":"General overhead","url":"https://dealroom.so/glossary/general-overhead"},{"slug":"utilities","term":"Utilities","url":"https://dealroom.so/glossary/utilities"},{"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":"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"},{"question":"Can working capital be used for unexpected business expenses after closing?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-be-used-for-unexpected-business-expenses-after-closing"},{"question":"For what specific types of business expenses can I use an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/for-what-specific-types-of-business-expenses-can-i-use-an-sba-7-a-loan"},{"question":"Can an SBA 7(a) loan be used for general business expenses like ongoing rent?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-for-general-business-expenses-like-ongoing-rent"},{"question":"Can I use an SBA 7(a) loan to cover my business's daily operating expenses?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-cover-my-business-s-daily-operating-expenses"}]},"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 — Business expense","url":"https://dealroom.so/glossary/business-expense","source_type":"DealRoom Data"}}