{"ok":true,"canonical_url":"https://dealroom.so/glossary/operational-continuity","api_url":"https://dealroom.so/api/public/glossary/operational-continuity","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":"operational-continuity","term":"Operational continuity","group":"Reading the business","definition":"This refers to a business's ability to keep running smoothly during and after a significant event, like a change of ownership. As a buyer, you need to ensure the business won't skip a beat after you take over.","what_it_means":"For a 7(a) acquisition, your lender and the SBA want to see a clear plan for how the business will maintain its revenue and operations post-closing. This involves assessing key employees, client relationships, and critical systems during due diligence. You must demonstrate you can step into the owner's shoes or have a manager ready.","url":"https://dealroom.so/glossary/operational-continuity","official_sources":[],"related":[{"slug":"client-retention","term":"Client retention","url":"https://dealroom.so/glossary/client-retention"},{"slug":"operational-disruption","term":"Operational disruption","url":"https://dealroom.so/glossary/operational-disruption"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"change-of-ownership","term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"}],"related_questions":[{"question":"What are the specific requirements for business continuity if the seller is the sole proprietor?","url":"https://dealroom.so/sba-7a/questions/what-are-the-specific-requirements-for-business-continuity-if-the-seller-is-the-sole-propr"},{"question":"What information does the SBA 7(a) loan program require for business continuity after an acquisition?","url":"https://dealroom.so/for-lenders/questions/what-information-does-the-sba-7-a-loan-program-require-for-business-continuity-after-an-ac"},{"question":"What if the franchisor requires specific operational changes that impact the business's profitability?","url":"https://dealroom.so/sba-7a/questions/what-if-the-franchisor-requires-specific-operational-changes-that-impact-the-business-s-pr"},{"question":"Can an SBA 7(a) loan cover ongoing operational costs like rent or utilities?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-ongoing-operational-costs-like-rent-or-utilities"},{"question":"Is working capital from an SBA loan available immediately at closing for operational expenses and payroll?","url":"https://dealroom.so/sba-7a/questions/is-working-capital-from-an-sba-loan-available-immediately-at-closing-for-operational-expen"},{"question":"If I am buying a business where I was previously an employee, does my operational experience count?","url":"https://dealroom.so/sba-7a/questions/if-i-am-buying-a-business-where-i-was-previously-an-employee-does-my-operational-experienc"}]},"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 — Operational continuity","url":"https://dealroom.so/glossary/operational-continuity","source_type":"DealRoom Data"}}