{"ok":true,"canonical_url":"https://dealroom.so/glossary/new-venture","api_url":"https://dealroom.so/api/public/glossary/new-venture","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":"new-venture","term":"New venture","group":"Reading the business","definition":"This refers to a newly established business with no operating history. SBA loans for new ventures are generally harder to get due to higher perceived risk.","what_it_means":"While SBA 7(a) loans are primarily for existing businesses, they can finance certain new ventures, especially if you have significant industry experience and strong equity injection. Buying an existing, operating business is generally preferred by lenders due to established cash flow and a track record, which reduces risk.","url":"https://dealroom.so/glossary/new-venture","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"},{"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":"start-up","term":"Start-up","url":"https://dealroom.so/glossary/start-up"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"}],"related_questions":[{"question":"If I own other businesses, can I still get an SBA 7(a) loan for a new venture or acquisition?","url":"https://dealroom.so/sba-loans/basics/if-i-own-other-businesses-can-i-still-get-an-sba-7-a-loan-for-a-new-venture-or-acquisition"},{"question":"Can I use my business's retained earnings from a prior venture as equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-my-business-s-retained-earnings-from-a-prior-venture-as-equity-injection"},{"question":"Can a past business failure or dissolution from a previous venture impact my SBA 7(a) eligibility?","url":"https://dealroom.so/sba-7a/questions/can-a-past-business-failure-or-dissolution-from-a-previous-venture-impact-my-sba-7-a-eligi"},{"question":"Can I use business assets I already own, like equipment from a previous venture, as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-business-assets-i-already-own-like-equipment-from-a-previous-venture-as-part-of-"},{"question":"What specific criteria must be met for a joint venture to be exempt from affiliation rules for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-criteria-must-be-met-for-a-joint-venture-to-be-exempt-from-affiliation-rules"},{"question":"Are SBA 7(a) loans only for brand new businesses (startups)?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-brand-new-businesses-startups"}]},"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 — New venture","url":"https://dealroom.so/glossary/new-venture","source_type":"DealRoom Data"}}