{"ok":true,"canonical_url":"https://dealroom.so/glossary/projected-expense","api_url":"https://dealroom.so/api/public/glossary/projected-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":"projected-expense","term":"Projected expense","group":"Reading the business","definition":"An estimate of future costs a business expects to incur, used in financial projections to forecast profitability and cash flow. Accuracy is vital for your business plan.","what_it_means":"Your business plan will include detailed financial projections with projected expenses. Lenders will scrutinize these to ensure they are realistic and cover all operational costs, including your new debt service. Underestimate at your peril; it impacts the lender's assessment of your repayment capacity.","url":"https://dealroom.so/glossary/projected-expense","official_sources":[],"related":[{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"What if the acquired business has a history of losses but strong projected growth under new ownership?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-has-a-history-of-losses-but-strong-projected-growth-under-ne"},{"question":"What happens if the business's projected cash flow barely covers the new SBA 7(a) loan payments?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-s-projected-cash-flow-barely-covers-the-new-sba-7-a-loan-paym"},{"question":"Could a significant drop in the buyer's post-acquisition projected cash flow kill SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/could-a-significant-drop-in-the-buyer-s-post-acquisition-projected-cash-flow-kill-sba-7-a-"},{"question":"What kind of everyday expenses can working capital cover?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-everyday-expenses-can-working-capital-cover"},{"question":"Which pre-closing business expenses can count towards equity?","url":"https://dealroom.so/sba-7a/questions/which-pre-closing-business-expenses-can-count-towards-equity"},{"question":"Can working capital be used for unexpected business expenses after closing?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-be-used-for-unexpected-business-expenses-after-closing"}]},"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 — Projected expense","url":"https://dealroom.so/glossary/projected-expense","source_type":"DealRoom Data"}}