{"ok":true,"canonical_url":"https://dealroom.so/glossary/viable-going-concern","api_url":"https://dealroom.so/api/public/glossary/viable-going-concern","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":"viable-going-concern","term":"Viable Going Concern","group":"Reading the business","definition":"A business that can operate profitably and generate sufficient cash flow to cover its expenses and debt obligations into the foreseeable future. Lenders look for this to ensure repayment capacity.","what_it_means":"The SBA requires that the business you're buying be a \"viable going concern\" at the time of closing and projected to remain so. This means the numbers must show it can service the new debt and operate without immediate risk of failure. Your due diligence needs to confirm this operational health, not just past performance.","url":"https://dealroom.so/glossary/viable-going-concern","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"}],"related_questions":[{"question":"What if a franchise agreement contains provisions for indemnification that concern the SBA?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-agreement-contains-provisions-for-indemnification-that-concern-the-sba"},{"question":"What if the acquired business's real estate has an environmental concern requiring remediation?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-s-real-estate-has-an-environmental-concern-requiring-remedia"},{"question":"What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-purpose-of-the-annual-service-fee-on-going-guaranty-fee-for-an-sba-7-a-loan"},{"question":"How does the SBA calculate the annual service fee (on-going guaranty fee) charged to the lender for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-calculate-the-annual-service-fee-on-going-guaranty-fee-charged-to-the-len"},{"question":"What if the acquired business property has existing environmental concerns, like old fuel tanks?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-property-has-existing-environmental-concerns-like-old-fuel-t"},{"question":"What are a lender's responsibilities concerning the proper use of 7(a) loan proceeds by the borrower?","url":"https://dealroom.so/for-lenders/questions/what-are-a-lender-s-responsibilities-concerning-the-proper-use-of-7-a-loan-proceeds-by-the"}]},"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 — Viable Going Concern","url":"https://dealroom.so/glossary/viable-going-concern","source_type":"DealRoom Data"}}