{"ok":true,"canonical_url":"https://dealroom.so/glossary/economic-index","api_url":"https://dealroom.so/api/public/glossary/economic-index","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":"economic-index","term":"Economic index","group":"Reading the business","definition":"An economic index is a statistical measure that tracks changes in a specific sector or the overall economy, such as GDP or consumer confidence. These indices help you understand the broader market conditions affecting the business you're buying.","what_it_means":"While not directly part of the loan application, understanding relevant economic indices helps you assess the industry and market conditions a target business operates within. For example, if you're buying a construction business, housing starts (an economic index) are highly relevant. Use these to inform your due diligence and cash flow projections.","url":"https://dealroom.so/glossary/economic-index","official_sources":[],"related":[{"slug":"market-analysis","term":"Market analysis","url":"https://dealroom.so/glossary/market-analysis"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"}],"related_questions":[{"question":"How does a lender determine affiliation for size purposes when evaluating common economic dependence?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-affiliation-for-size-purposes-when-evaluating-common-economic-"},{"question":"Can I use a conditional grant from a local economic development agency as equity?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-conditional-grant-from-a-local-economic-development-agency-as-equity"},{"question":"Are SBA 7(a) loan interest rates typically fixed or variable, and what base rate index is commonly used?","url":"https://dealroom.so/sba-7a/questions/are-sba-7-a-loan-interest-rates-typically-fixed-or-variable-and-what-base-rate-index-is-co"},{"question":"Under what conditions does a shared economic interest trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-does-a-shared-economic-interest-trigger-affiliation-for-sba-size-sta"}]},"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 — Economic index","url":"https://dealroom.so/glossary/economic-index","source_type":"DealRoom Data"}}