{"ok":true,"canonical_url":"https://dealroom.so/glossary/start-up","api_url":"https://dealroom.so/api/public/glossary/start-up","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":"start-up","term":"Start-up","group":"Reading the business","definition":"A newly formed business with no operating history or established revenue stream. Buyers care because SBA 7(a) loans are generally much harder to secure for startups compared to acquiring an established business due to higher inherent risk.","what_it_means":"The SBA prefers financing existing businesses with a proven track record. While some startups can get SBA loans, the underwriting is much tougher, requiring stronger equity injection, collateral, and a highly convincing business plan. As an acquisition buyer, you generally benefit from the SBA's preference for existing businesses.","url":"https://dealroom.so/glossary/start-up","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":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"What are the minimum cash equity requirements for acquiring a start-up business with an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-minimum-cash-equity-requirements-for-acquiring-a-start-up-business-with-an-sb"},{"question":"How should a lender document the 'prudent lending standards' applied when approving a 7(a) loan for a new business start-up?","url":"https://dealroom.so/for-lenders/questions/how-should-a-lender-document-the-prudent-lending-standards-applied-when-approving-a-7-a-lo"},{"question":"Can I speed up the SBA 7(a) loan application process?","url":"https://dealroom.so/sba-loans/basics/can-i-speed-up-the-sba-7-a-loan-application-process"},{"question":"Does working with a 'Preferred Lender' speed up the SBA 7(a) loan process?","url":"https://dealroom.so/sba-loans/basics/does-working-with-a-preferred-lender-speed-up-the-sba-7-a-loan-process"},{"question":"Can an SBA 7(a) loan help me start a brand new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-help-me-start-a-brand-new-business"},{"question":"What factors can speed up or slow down the SBA 7(a) loan approval process?","url":"https://dealroom.so/sba-7a/questions/what-factors-can-speed-up-or-slow-down-the-sba-7-a-loan-approval-process"}]},"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 — Start-up","url":"https://dealroom.so/glossary/start-up","source_type":"DealRoom Data"}}