{"ok":true,"canonical_url":"https://dealroom.so/glossary/turnaround-plan","api_url":"https://dealroom.so/api/public/glossary/turnaround-plan","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":"turnaround-plan","term":"Turnaround Plan","group":"Reading the business","definition":"This is a strategic plan to revive a struggling business by identifying problems, implementing solutions, and restoring profitability. It outlines specific actions and timelines.","what_it_means":"If you're acquiring a business that needs significant operational improvement, your lender will want to see a credible turnaround plan as part of your business plan. It demonstrates your understanding of the challenges and how you'll achieve the cash flow needed for debt service.","url":"https://dealroom.so/glossary/turnaround-plan","official_sources":[],"related":[{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What if the acquired business has a history of declining revenue, but the buyer has a strong turnaround plan?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-has-a-history-of-declining-revenue-but-the-buyer-has-a-stron"},{"question":"Is a comprehensive business plan mandatory for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-a-comprehensive-business-plan-mandatory-for-an-sba-7-a-loan"},{"question":"Is a detailed business plan necessary for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-loans/basics/is-a-detailed-business-plan-necessary-for-an-sba-7-a-loan-application"},{"question":"How important is a business plan for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-loans/basics/how-important-is-a-business-plan-for-an-sba-7-a-loan-application"},{"question":"Does the SBA require me to create a formal business plan to apply?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-require-me-to-create-a-formal-business-plan-to-apply"},{"question":"What is the required timeframe for a lender to submit a liquidation plan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-required-timeframe-for-a-lender-to-submit-a-liquidation-plan"}]},"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 — Turnaround Plan","url":"https://dealroom.so/glossary/turnaround-plan","source_type":"DealRoom Data"}}