{"ok":true,"canonical_url":"https://dealroom.so/glossary/build-out","api_url":"https://dealroom.so/api/public/glossary/build-out","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":"build-out","term":"Build-out","group":"Doing the deal","definition":"Refers to the construction or renovation of a commercial space to make it suitable for your business operations. This is common for businesses moving to new premises or significantly upgrading existing ones.","what_it_means":"If the acquired business requires substantial renovations or tenant improvements, these are considered build-out costs. A 7(a) loan can include funds for leasehold improvements, but you'll need detailed estimates and potentially a contractor's bid. Factor these costs into your overall project budget and timeline.","url":"https://dealroom.so/glossary/build-out","official_sources":[{"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":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"startup-costs","term":"Startup costs","url":"https://dealroom.so/glossary/startup-costs"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"question":"Can an SBA 7(a) loan finance major renovations or build-outs for leased commercial property?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-major-renovations-or-build-outs-for-leased-commercial-property"},{"question":"Can an SBA 7(a) loan cover buying land for my business to build on later?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-buying-land-for-my-business-to-build-on-later"},{"question":"Can an SBA 7(a) loan be used to build a new commercial building for my business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-build-a-new-commercial-building-for-my-business"},{"question":"How is the business valued when buying out a 50% partner?","url":"https://dealroom.so/sba-7a/questions/how-is-the-business-valued-when-buying-out-a-50-partner"},{"question":"Can a seller note be partially on standby and partially paid out?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-partially-on-standby-and-partially-paid-out"},{"question":"Can cash-out loan proceeds go to the remaining owner in a buyout?","url":"https://dealroom.so/sba-7a/questions/can-cash-out-loan-proceeds-go-to-the-remaining-owner-in-a-buyout"}]},"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 — Build-out","url":"https://dealroom.so/glossary/build-out","source_type":"DealRoom Data"}}