{"ok":true,"canonical_url":"https://dealroom.so/glossary/operating-expense","api_url":"https://dealroom.so/api/public/glossary/operating-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":"operating-expense","term":"Operating expense","group":"Reading the business","definition":"These are the costs a business incurs to run its day-to-day operations, like rent, salaries, utilities, and supplies. They directly impact profitability and cash flow.","what_it_means":"When evaluating a business, scrutinize every operating expense on the Profit and Loss Statement. Look for","url":"https://dealroom.so/glossary/operating-expense","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"}],"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":"What duration of post-acquisition operating expenses can working capital typically cover?","url":"https://dealroom.so/sba-7a/questions/what-duration-of-post-acquisition-operating-expenses-can-working-capital-typically-cover"},{"question":"Can I use an SBA 7(a) loan for general operating expenses, like payroll or rent?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-general-operating-expenses-like-payroll-or-rent"},{"question":"Can an SBA 7(a) loan be used for general operating expenses, like rent and utilities?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-for-general-operating-expenses-like-rent-and-utilities"},{"question":"Can I use an SBA 7(a) loan to cover operating expenses like payroll or rent?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-cover-operating-expenses-like-payroll-or-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 — Operating expense","url":"https://dealroom.so/glossary/operating-expense","source_type":"DealRoom Data"}}