{"ok":true,"canonical_url":"https://dealroom.so/glossary/reserve","api_url":"https://dealroom.so/api/public/glossary/reserve","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":"reserve","term":"Reserve","group":"Reading the business","definition":"Funds set aside for future unexpected expenses, liabilities, or a specific purpose. You need to understand a business's reserves to assess its financial health and capacity to handle unforeseen costs.","what_it_means":"Lenders may require you to maintain a working capital reserve as part of your loan terms, ensuring you have enough liquidity post-acquisition. Analyze existing business reserves during due diligence to confirm they're adequate for future capital expenditures or operational fluctuations.","url":"https://dealroom.so/glossary/reserve","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"Can an SBA 7(a) loan include funds for a cash reserve to cover initial operating losses?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-include-funds-for-a-cash-reserve-to-cover-initial-operating-losses"}]},"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 — Reserve","url":"https://dealroom.so/glossary/reserve","source_type":"DealRoom Data"}}