{"ok":true,"canonical_url":"https://dealroom.so/glossary/speculation","api_url":"https://dealroom.so/api/public/glossary/speculation","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":"speculation","term":"Speculation","group":"The loan itself","definition":"This refers to using SBA loan funds for ventures that are highly uncertain or primarily aim to profit from future price changes, like buying and selling commodities. Such uses are strictly prohibited.","what_it_means":"The SBA will not finance businesses whose primary purpose is speculation, such as real estate flipping or trading in futures. Your business plan must demonstrate a clear operating model with revenue generated from goods or services, not just market fluctuations. Lenders will scrutinize the use of proceeds.","url":"https://dealroom.so/glossary/speculation","official_sources":[{"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"},{"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":"passive-investment","term":"Passive Investment","url":"https://dealroom.so/glossary/passive-investment"},{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[]},"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 — Speculation","url":"https://dealroom.so/glossary/speculation","source_type":"DealRoom Data"}}