Glossary · Reading the business
Utilities
In short
These are essential services like electricity, water, and gas. They are a recurring operating cost that directly impacts a business's profitability and cash flow.
What it means in a deal
When reviewing financials, ensure utilities are consistently expensed and consider seasonal fluctuations. High or erratic utility costs could signal inefficient operations or deferred maintenance, impacting your post-acquisition operating budget.
Related terms
Common questions about Utilities
- Can an SBA 7(a) loan cover ongoing operational costs like rent or utilities?
- Can an SBA 7(a) loan be used for general operating expenses, like rent and utilities?
- Are day-to-day operational expenses like rent or utilities an allowed use of SBA 7(a) loan funds?
- Can an SBA 7(a) loan include funds for operational expenses like payroll and utilities for the first few months after acquisition?
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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