{"ok":true,"canonical_url":"https://dealroom.so/glossary/ordinary-course-of-business","api_url":"https://dealroom.so/api/public/glossary/ordinary-course-of-business","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"ordinary-course-of-business","term":"Ordinary Course of Business","group":"Reading the business","definition":"This refers to the normal, day-to-day operations and transactions of a business. Lenders assess whether the business has been operating in its ordinary course to understand its true financial performance and avoid unusual, one-off events.","what_it_means":"During due diligence, you'll examine financial statements to ensure the business's revenue and expenses reflect its typical operations. Any transactions outside the ordinary course, like large, unusual asset sales, might be add-backs but need careful scrutiny to understand recurring cash flow. Your purchase agreement will also typically require the seller to continue operating in the ordinary course until closing.","url":"https://dealroom.so/glossary/ordinary-course-of-business","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"}],"related_questions":[{"question":"What is the importance of a detailed business plan for an SBA 7(a) loan application, especially for new or acquiring businesses?","url":"https://dealroom.so/for-lenders/questions/what-is-the-importance-of-a-detailed-business-plan-for-an-sba-7-a-loan-application-especia"},{"question":"Are SBA 7(a) loans only for specific kinds of small businesses?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-specific-kinds-of-small-businesses"},{"question":"What types of businesses can usually get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-businesses-can-usually-get-an-sba-7-a-loan"},{"question":"Which specific types of businesses cannot get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/which-specific-types-of-businesses-cannot-get-an-sba-7-a-loan"},{"question":"Which types of businesses are typically ineligible for SBA 7(a) financing?","url":"https://dealroom.so/sba-loans/basics/which-types-of-businesses-are-typically-ineligible-for-sba-7-a-financing"},{"question":"When does familial relationship between owners of separate businesses trigger affiliation for size?","url":"https://dealroom.so/for-lenders/questions/when-does-familial-relationship-between-owners-of-separate-businesses-trigger-affiliation-"}]},"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 — Ordinary Course of Business","url":"https://dealroom.so/glossary/ordinary-course-of-business","source_type":"DealRoom Data"}}