{"ok":true,"canonical_url":"https://dealroom.so/glossary/salary","api_url":"https://dealroom.so/api/public/glossary/salary","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":"salary","term":"Salary","group":"Reading the business","definition":"A fixed regular payment made to employees, often monthly or bi-weekly, regardless of hours worked. Buyers care because it's a fixed operating expense that impacts the business's profitability and cash flow.","what_it_means":"When reviewing the P&L, distinguish between owner's salary (which is often an add-back for SDE) and employee salaries. High employee salaries can indicate a well-staffed operation but also a significant fixed cost. Analyze historical trends to ensure the business can sustain its payroll post-acquisition.","url":"https://dealroom.so/glossary/salary","official_sources":[],"related":[{"slug":"expense","term":"Expense","url":"https://dealroom.so/glossary/expense"},{"slug":"wage","term":"Wage","url":"https://dealroom.so/glossary/wage"},{"slug":"p-l","term":"P&L","url":"https://dealroom.so/glossary/p-l"},{"slug":"owner-s-draw","term":"Owner's draw","url":"https://dealroom.so/glossary/owner-s-draw"}],"related_questions":[{"question":"Can working capital from an SBA loan be used to pay myself a salary immediately after closing?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-from-an-sba-loan-be-used-to-pay-myself-a-salary-immediately-after-clos"},{"question":"Can an SBA 7(a) loan be used to pay myself a salary immediately after closing the acquisition?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-loan-be-used-to-pay-myself-a-salary-immediately-after-closing-the-acquisiti"},{"question":"Can I use an SBA 7(a) loan to pay myself a salary immediately after closing the acquisition?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-pay-myself-a-salary-immediately-after-closing-the-acquisition"}]},"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 — Salary","url":"https://dealroom.so/glossary/salary","source_type":"DealRoom Data"}}