{"ok":true,"canonical_url":"https://dealroom.so/glossary/deferred-maintenance","api_url":"https://dealroom.so/api/public/glossary/deferred-maintenance","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":"deferred-maintenance","term":"Deferred Maintenance","group":"Reading the business","definition":"This is necessary repairs or upkeep that have been put off. It's important because it represents hidden costs you'll have to pay after closing to keep the business operating, impacting your post-acquisition cash flow.","what_it_means":"When you're doing due diligence, look for signs of deferred maintenance in equipment, vehicles, or the physical premises. Get an inspection to quantify these costs. Factor these into your total project costs or negotiate a lower purchase price to cover the future expense.","url":"https://dealroom.so/glossary/deferred-maintenance","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"cash-flow-after-debt-service","term":"Cash flow after debt service","url":"https://dealroom.so/glossary/cash-flow-after-debt-service"},{"slug":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"}],"related_questions":[{"question":"How does a lender assess deferred maintenance or capital expenditure needs of an acquired business?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-deferred-maintenance-or-capital-expenditure-needs-of-an-acquired-"},{"question":"Are there any annual maintenance or servicing fees that I, as the borrower, pay to the SBA directly?","url":"https://dealroom.so/sba-7a/questions/are-there-any-annual-maintenance-or-servicing-fees-that-i-as-the-borrower-pay-to-the-sba-d"},{"question":"What is the requirement for a lender to ensure proper maintenance of life insurance collateral on key principals?","url":"https://dealroom.so/for-lenders/questions/what-is-the-requirement-for-a-lender-to-ensure-proper-maintenance-of-life-insurance-collat"},{"question":"What if the business I'm buying has existing deferred revenue or unearned income?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-existing-deferred-revenue-or-unearned-income"},{"question":"Can a partial equity injection come from a deferred management bonus from my current employer?","url":"https://dealroom.so/sba-7a/questions/can-a-partial-equity-injection-come-from-a-deferred-management-bonus-from-my-current-emplo"},{"question":"How does a lender underwrite a business acquisition with existing deferred revenue or unearned income?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-underwrite-a-business-acquisition-with-existing-deferred-revenue-or-unea"}]},"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 — Deferred Maintenance","url":"https://dealroom.so/glossary/deferred-maintenance","source_type":"DealRoom Data"}}