Glossary · Reading the business
General overhead
In short
These are ongoing business expenses not directly tied to producing goods or services, like rent, administrative salaries, and office supplies. They are fixed costs essential for operations.
What it means in a deal
Analyze overhead for efficiency and potential cost savings post-acquisition. Be wary of unusually low overhead, which might indicate deferred expenses the seller isn't disclosing, or unusually high overhead that could be trimmed.
Related terms
Common questions about General overhead
- How does business overhead expense insurance differ from key-person life insurance?
- Can an SBA 7(a) loan be used for general business expansion?
- What are the general collateral requirements for an SBA 7(a) loan?
- What is the SBA's general requirement for lien position on business collateral?
- What are the general credit score expectations for an SBA 7(a) loan applicant?
- For general business protection, should the business or individual owners own the life insurance policy?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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