{"ok":true,"canonical_url":"https://dealroom.so/glossary/capital-gain","api_url":"https://dealroom.so/api/public/glossary/capital-gain","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":"capital-gain","term":"Capital gain","group":"Reading the business","definition":"A capital gain is the profit you make from selling an asset (like a business) for more than you paid for it. This is a primary driver for sellers and a potential future benefit for you as a buyer.","what_it_means":"When you eventually sell the business, the difference between your purchase price and the selling price will likely be a capital gain. Understanding how capital gains are taxed is crucial for your long-term investment strategy. For sellers, maximizing capital gain is often a key motivation, impacting deal structure.","url":"https://dealroom.so/glossary/capital-gain","official_sources":[],"related":[{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"multiple","term":"Multiple","url":"https://dealroom.so/glossary/multiple"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"}],"related_questions":[{"question":"Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program loan?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-limits-on-the-amount-of-working-capital-that-can-be-included-in-a-7-a-w"},{"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":"Can an SBA 7(a) loan finance working capital?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-working-capital"},{"question":"What is the typical repayment term for working capital only?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-repayment-term-for-working-capital-only"},{"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":"What does 'working capital' mean for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-does-working-capital-mean-for-an-sba-7-a-loan"}]},"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 — Capital gain","url":"https://dealroom.so/glossary/capital-gain","source_type":"DealRoom Data"}}