{"ok":true,"canonical_url":"https://dealroom.so/glossary/startup-cost","api_url":"https://dealroom.so/api/public/glossary/startup-cost","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":"startup-cost","term":"Startup Cost","group":"Reading the business","definition":"Expenses incurred before a business officially begins operations. In an acquisition, this typically refers to initial investments needed to get the newly acquired business running or to implement immediate changes.","what_it_means":"For an acquisition, Startup Costs might include initial inventory purchases, minor leasehold improvements, or working capital to bridge the gap until the business generates sufficient cash flow. Be precise in your cash flow projections and ensure any necessary startup costs are accounted for in your total project costs and loan structure.","url":"https://dealroom.so/glossary/startup-cost","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":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"}],"related_questions":[{"question":"Does an SBA 7(a) loan cover the initial franchise fee and associated startup costs?","url":"https://dealroom.so/sba-7a/questions/does-an-sba-7-a-loan-cover-the-initial-franchise-fee-and-associated-startup-costs"},{"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-"},{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"Are SBA 7(a) loans only for very small, startup businesses?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-very-small-startup-businesses"},{"question":"What if the business I'm acquiring is a startup with limited operating history?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-is-a-startup-with-limited-operating-history"},{"question":"Are SBA 7(a) loans mainly for startup businesses, or also for existing ones?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-mainly-for-startup-businesses-or-also-for-existing-ones"}]},"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 — Startup Cost","url":"https://dealroom.so/glossary/startup-cost","source_type":"DealRoom Data"}}