{"ok":true,"canonical_url":"https://dealroom.so/glossary/project-cost","api_url":"https://dealroom.so/api/public/glossary/project-cost","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":"project-cost","term":"Project cost","group":"Reading the business","definition":"The sum of all expenses required to complete your business acquisition, including the purchase price, working capital, and eligible closing costs. This total determines the size of your SBA loan.","what_it_means":"The \"Total project costs\" include the business purchase price, real estate (if applicable), equipment, necessary working capital, and \"Eligible closing costs.\" The SBA loan funds a portion of these costs, and your equity injection covers the rest. Lenders scrutinize this breakdown to ensure all uses of proceeds are eligible.","url":"https://dealroom.so/glossary/project-cost","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"},{"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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"eligible-closing-cost","term":"Eligible closing cost","url":"https://dealroom.so/glossary/eligible-closing-cost"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[{"question":"Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?","url":"https://dealroom.so/sba-7a/questions/can-closing-costs-such-as-legal-and-accounting-fees-be-included-in-the-total-project-cost-"},{"question":"What percentage of the project cost does the SBA typically expect as a down payment?","url":"https://dealroom.so/sba-loans/basics/what-percentage-of-the-project-cost-does-the-sba-typically-expect-as-a-down-payment"},{"question":"How does a lender request an increase to an authorized 7(a) loan amount due to unforeseen project cost increases?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-increase-to-an-authorized-7-a-loan-amount-due-to-unforeseen-p"},{"question":"For an acquisition with significant goodwill, what maximum goodwill percentage can the SBA 7(a) loan finance relative to the total project cost?","url":"https://dealroom.so/sba-7a/questions/for-an-acquisition-with-significant-goodwill-what-maximum-goodwill-percentage-can-the-sba-"},{"question":"Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/are-closing-costs-like-attorney-fees-eligible-to-be-part-of-the-project-costs-for-an-sba-l"},{"question":"If I buy a business with real estate, can the SBA loan finance a commercial renovation project costing $300,000?","url":"https://dealroom.so/sba-7a/questions/if-i-buy-a-business-with-real-estate-can-the-sba-loan-finance-a-commercial-renovation-proj"}]},"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 — Project cost","url":"https://dealroom.so/glossary/project-cost","source_type":"DealRoom Data"}}