{"ok":true,"canonical_url":"https://dealroom.so/glossary/reserves","api_url":"https://dealroom.so/api/public/glossary/reserves","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":"reserves","term":"Reserves","group":"Your money in the deal","definition":"Funds set aside by the buyer, often required by the lender, to cover unexpected expenses or provide a cushion during the initial operating period after acquisition. These are typically part of your equity injection.","what_it_means":"Lenders often require a certain amount of working capital or cash reserves as part of your equity injection to ensure the business has sufficient liquidity post-closing. This shows you have a buffer for unforeseen operational costs or slower-than-expected revenue. Factor these into your overall cash outlay.","url":"https://dealroom.so/glossary/reserves","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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[]},"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 — Reserves","url":"https://dealroom.so/glossary/reserves","source_type":"DealRoom Data"}}