{"ok":true,"canonical_url":"https://dealroom.so/glossary/working-capital-projections","api_url":"https://dealroom.so/api/public/glossary/working-capital-projections","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":"working-capital-projections","term":"Working Capital Projections","group":"Reading the business","definition":"These are forecasts of the cash a business needs to cover its day-to-day operations after an acquisition, beyond the purchase price. Accurate projections ensure the business has enough liquidity to operate smoothly post-closing.","what_it_means":"SBA lenders require detailed working capital projections to ensure the acquired business can sustain itself without immediate cash shortfalls. You'll need to show how much cash is required for inventory, payroll, and other operating expenses, and how that will be funded. Underestimate at your peril; the lender will scrutinize this.","url":"https://dealroom.so/glossary/working-capital-projections","official_sources":[],"related":[{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"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"}],"related_questions":[{"question":"How does the SBA's 'prudent lending standards' apply to the evaluation of working capital projections for a new business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-s-prudent-lending-standards-apply-to-the-evaluation-of-working-capital-pr"},{"question":"Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program loan?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-limits-on-the-amount-of-working-capital-that-can-be-included-in-a-7-a-w"},{"question":"What kind of everyday expenses can working capital cover?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-everyday-expenses-can-working-capital-cover"},{"question":"Can an SBA 7(a) loan finance working capital?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-working-capital"},{"question":"What is the typical repayment term for working capital only?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-repayment-term-for-working-capital-only"},{"question":"Can working capital be used for unexpected business expenses after closing?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-be-used-for-unexpected-business-expenses-after-closing"}]},"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 — Working Capital Projections","url":"https://dealroom.so/glossary/working-capital-projections","source_type":"DealRoom Data"}}