{"ok":true,"canonical_url":"https://dealroom.so/glossary/economically-feasible","api_url":"https://dealroom.so/api/public/glossary/economically-feasible","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":"economically-feasible","term":"Economically feasible","group":"Reading the business","definition":"This means the business is projected to generate enough cash flow to cover all operating expenses and debt payments, including your SBA loan. Lenders must determine if the business is economically feasible before approving a loan.","what_it_means":"The lender evaluates the historical financials and your cash flow projection to confirm the business's repayment capacity. If the business's DSCR is too low, or if the cash flow after debt service is insufficient, the loan may not be considered economically feasible.","url":"https://dealroom.so/glossary/economically-feasible","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"historical-financials","term":"Historical financials","url":"https://dealroom.so/glossary/historical-financials"},{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"}],"related_questions":[]},"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 — Economically feasible","url":"https://dealroom.so/glossary/economically-feasible","source_type":"DealRoom Data"}}