{"ok":true,"canonical_url":"https://dealroom.so/glossary/renovation","api_url":"https://dealroom.so/api/public/glossary/renovation","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":"renovation","term":"Renovation","group":"The loan itself","definition":"Renovation refers to improving existing structures, which SBA 7(a) loans can fund for your business. It matters because it impacts your total project costs and ensures your acquired property meets operational needs.","what_it_means":"If you're buying a business with real estate that needs upgrades, the SBA 7(a) loan can cover the costs. This means you can roll the renovation expense into your primary business acquisition financing, but ensure your lender is clear on the scope and timeline. Plan for proper oversight of the construction process.","url":"https://dealroom.so/glossary/renovation","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":"equipment-installation","term":"Equipment installation","url":"https://dealroom.so/glossary/equipment-installation"},{"slug":"owner-occupied-business-real-estate","term":"Owner-occupied business real estate","url":"https://dealroom.so/glossary/owner-occupied-business-real-estate"},{"slug":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"}],"related_questions":[{"question":"Can an SBA 7(a) loan cover construction or renovation of a business property?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-construction-or-renovation-of-a-business-property"},{"question":"Can an SBA 7(a) loan finance the renovation of a leased business property?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-finance-the-renovation-of-a-leased-business-property"},{"question":"Can renovation costs for an acquired business premises count towards my required 10% equity injection?","url":"https://dealroom.so/sba-7a/questions/can-renovation-costs-for-an-acquired-business-premises-count-towards-my-required-10-equity"},{"question":"Can an SBA 7(a) loan be used for construction or renovation of business property?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-for-construction-or-renovation-of-business-property"},{"question":"Can I use an SBA 7(a) loan for construction or renovation of a business property?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-construction-or-renovation-of-a-business-property"},{"question":"Can I use an SBA 7(a) loan to pay for construction or renovation of my business property?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-pay-for-construction-or-renovation-of-my-business-property"}]},"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 — Renovation","url":"https://dealroom.so/glossary/renovation","source_type":"DealRoom Data"}}