{"ok":true,"canonical_url":"https://dealroom.so/glossary/research-and-development","api_url":"https://dealroom.so/api/public/glossary/research-and-development","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":"research-and-development","term":"Research and development","group":"Reading the business","definition":"This refers to activities a business undertakes to innovate, develop new products or services, or improve existing ones. It's often an expense line item that can impact current profitability but drive future growth.","what_it_means":"When reviewing a target business, understand if significant R&D expenses are necessary for its ongoing competitiveness or if they represent discretionary spending. High R&D can depress current profits, but cutting it might harm future growth. Analyze its historical impact on the business's valuation and projections.","url":"https://dealroom.so/glossary/research-and-development","official_sources":[],"related":[{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"owner-earnings","term":"Owner earnings","url":"https://dealroom.so/glossary/owner-earnings"}],"related_questions":[{"question":"What if the business I'm buying requires significant ongoing research and development?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-requires-significant-ongoing-research-and-development"},{"question":"Can I use a conditional grant from a local economic development agency as equity?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-conditional-grant-from-a-local-economic-development-agency-as-equity"},{"question":"What is the role of an SBA Business Development Officer (BDO) in my loan process?","url":"https://dealroom.so/sba-7a/questions/what-is-the-role-of-an-sba-business-development-officer-bdo-in-my-loan-process"},{"question":"What is the relationship between SBA Form 1919 and 1920, and which is currently required for 7(a) loan applications?","url":"https://dealroom.so/for-lenders/questions/what-is-the-relationship-between-sba-form-1919-and-1920-and-which-is-currently-required-fo"},{"question":"What is the ongoing annual service fee for a 7(a) loan, and how is it calculated and remitted by the lender?","url":"https://dealroom.so/for-lenders/questions/what-is-the-ongoing-annual-service-fee-for-a-7-a-loan-and-how-is-it-calculated-and-remitte"},{"question":"Which critical loan terms and borrower data must match precisely between the lender's system and E-Tran for 7(a) submissions?","url":"https://dealroom.so/for-lenders/questions/which-critical-loan-terms-and-borrower-data-must-match-precisely-between-the-lender-s-syst"}]},"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 — Research and development","url":"https://dealroom.so/glossary/research-and-development","source_type":"DealRoom Data"}}