{"ok":true,"canonical_url":"https://dealroom.so/glossary/pre-approval","api_url":"https://dealroom.so/api/public/glossary/pre-approval","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":"pre-approval","term":"Pre-approval","group":"Doing the deal","definition":"A preliminary assessment by a lender indicating how much you might be able to borrow for a business acquisition, based on your financial profile. It confirms your eligibility and capacity before you make an offer.","what_it_means":"Getting pre-approved for an SBA 7(a) loan is crucial before seriously looking at businesses. It tells sellers and brokers you're a serious, qualified buyer and speeds up the Letter of Intent (LOI) and due diligence process. A pre-approval signals that your personal credit, liquidity, and experience meet initial lender requirements.","url":"https://dealroom.so/glossary/pre-approval","official_sources":[],"related":[{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"proof-of-funds","term":"Proof of funds","url":"https://dealroom.so/glossary/proof-of-funds"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"Which pre-closing business expenses can count towards equity?","url":"https://dealroom.so/sba-7a/questions/which-pre-closing-business-expenses-can-count-towards-equity"},{"question":"What documentation is required if a business owner contributes pre-existing business equipment as equity?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-if-a-business-owner-contributes-pre-existing-business-equip"},{"question":"Can I pre-qualify for an SBA 7(a) loan before finding a specific business?","url":"https://dealroom.so/sba-loans/basics/can-i-pre-qualify-for-an-sba-7-a-loan-before-finding-a-specific-business"},{"question":"Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/are-pre-closing-legal-and-accounting-fees-eligible-to-be-counted-towards-my-equity-injecti"},{"question":"If I contribute inventory purchased pre-closing for the acquired business, can it count as equity?","url":"https://dealroom.so/sba-7a/questions/if-i-contribute-inventory-purchased-pre-closing-for-the-acquired-business-can-it-count-as-"},{"question":"Can pre-closing legal and accounting fees associated with the acquisition be counted towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-pre-closing-legal-and-accounting-fees-associated-with-the-acquisition-be-counted-towar"}]},"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 — Pre-approval","url":"https://dealroom.so/glossary/pre-approval","source_type":"DealRoom Data"}}