{"ok":true,"canonical_url":"https://dealroom.so/glossary/project-costs","api_url":"https://dealroom.so/api/public/glossary/project-costs","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-costs","term":"Project costs","group":"Reading the business","definition":"This refers to the total funds needed to complete your business acquisition, including the purchase price, working capital, closing costs, and any required renovations or equipment.","what_it_means":"When applying for an SBA loan, you must clearly itemize all project costs. This total determines your required equity injection and the maximum loan amount. Be thorough, as underestimating can lead to funding gaps or delays. Lenders will scrutinize this breakdown.","url":"https://dealroom.so/glossary/project-costs","official_sources":[],"related":[{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[{"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":"What documentation is required to amend a 7(a) loan authorization for a change in project costs?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-amend-a-7-a-loan-authorization-for-a-change-in-project-c"},{"question":"What is the maximum percentage of project costs that can be funded by an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-percentage-of-project-costs-that-can-be-funded-by-an-sba-7-a-loan"},{"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":"How does a lender handle a 7(a) loan authorization amendment request for an increase in project costs post-closing?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-handle-a-7-a-loan-authorization-amendment-request-for-an-increase-in-pro"},{"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"}]},"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 costs","url":"https://dealroom.so/glossary/project-costs","source_type":"DealRoom Data"}}