{"ok":true,"canonical_url":"https://dealroom.so/glossary/going-concern","api_url":"https://dealroom.so/api/public/glossary/going-concern","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":"going-concern","term":"Going concern","group":"Reading the business","definition":"An accounting assumption that a business will continue to operate indefinitely and not be forced to liquidate its assets. It's fundamental to how financial statements are prepared.","what_it_means":"When you're buying a business, you're buying a \"going concern\" – an operational entity meant to continue generating revenue. Lenders assess the business's ability to remain a going concern, looking at its Cash flow and overall financial health to ensure it can repay the SBA loan. If there's a \"going concern\" qualification in an audit, it's a major red flag.","url":"https://dealroom.so/glossary/going-concern","official_sources":[],"related":[{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"}],"related_questions":[{"question":"What if a franchise agreement contains provisions for indemnification that concern the SBA?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-agreement-contains-provisions-for-indemnification-that-concern-the-sba"},{"question":"What if the acquired business's real estate has an environmental concern requiring remediation?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-s-real-estate-has-an-environmental-concern-requiring-remedia"},{"question":"What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-purpose-of-the-annual-service-fee-on-going-guaranty-fee-for-an-sba-7-a-loan"},{"question":"How does the SBA calculate the annual service fee (on-going guaranty fee) charged to the lender for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-calculate-the-annual-service-fee-on-going-guaranty-fee-charged-to-the-len"},{"question":"What if the acquired business property has existing environmental concerns, like old fuel tanks?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-property-has-existing-environmental-concerns-like-old-fuel-t"},{"question":"What are a lender's responsibilities concerning the proper use of 7(a) loan proceeds by the borrower?","url":"https://dealroom.so/for-lenders/questions/what-are-a-lender-s-responsibilities-concerning-the-proper-use-of-7-a-loan-proceeds-by-the"}]},"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 — Going concern","url":"https://dealroom.so/glossary/going-concern","source_type":"DealRoom Data"}}