{"ok":true,"canonical_url":"https://dealroom.so/glossary/project-feasibility","api_url":"https://dealroom.so/api/public/glossary/project-feasibility","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-feasibility","term":"Project feasibility","group":"Reading the business","definition":"The assessment of whether a proposed business acquisition is practical and likely to succeed financially. Buyers care because it determines if the deal makes sense and if the business can support the new debt.","what_it_means":"Your lender will conduct a thorough analysis of the project's feasibility, scrutinizing the business plan, financial projections, and your experience. You must present a compelling case that the business can generate enough cash flow to cover the SBA loan payments and provide you with a reasonable living.","url":"https://dealroom.so/glossary/project-feasibility","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":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"},{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"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":"Can I finance a significant leasehold improvement project with my SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/can-i-finance-a-significant-leasehold-improvement-project-with-my-sba-7-a-acquisition-loan"},{"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":"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":"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-"}]},"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 feasibility","url":"https://dealroom.so/glossary/project-feasibility","source_type":"DealRoom Data"}}