{"ok":true,"canonical_url":"https://dealroom.so/glossary/renovation-expenses","api_url":"https://dealroom.so/api/public/glossary/renovation-expenses","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-expenses","term":"Renovation expenses","group":"Reading the business","definition":"These are costs to improve or update existing property. Buyers need to understand these expenses to budget for necessary upgrades or if the seller has deferred maintenance, impacting future cash flow.","what_it_means":"Evaluate the condition of the business's property during due diligence. Significant renovation expenses can be financed by an SBA 7(a) loan as part of the total project costs, especially for leasehold improvements or owner-occupied commercial real estate. Ensure your cash flow projections account for these potential outlays.","url":"https://dealroom.so/glossary/renovation-expenses","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":"construction-costs","term":"Construction costs","url":"https://dealroom.so/glossary/construction-costs"},{"slug":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"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 expenses","url":"https://dealroom.so/glossary/renovation-expenses","source_type":"DealRoom Data"}}