Glossary · Reading the business
Non-recurring event
In short
An unusual or one-time business transaction or expense that is not expected to happen again in the normal course of operations. These are often "added back" to earnings to show normalized profitability.
What it means in a deal
When reviewing financial statements, identify non-recurring events like a large legal settlement, an unusual equipment sale, or a one-time consulting fee. These "add-backs" adjust historical financials to reflect the business's true, ongoing earning power, which is what matters for valuation and loan approval.
Related terms
Common questions about Non-recurring event
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- What happens if a significant post-closing event impacts the borrower's ability to repay an SBA 7(a) loan?
- Can the value of customer contracts or recurring revenue streams count as collateral for an SBA loan?
- Are there any recurring annual fees or charges I will pay directly to the SBA for my 7(a) loan?
- How does a lender assess the impact of a significant post-closing event on the borrower's ability to repay a 7(a) loan?
- Can an SBA 7(a) loan finance the intangible assets of a service business, such as client lists or recurring contracts?
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.