{"ok":true,"canonical_url":"https://dealroom.so/glossary/startup-costs","api_url":"https://dealroom.so/api/public/glossary/startup-costs","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-costs","term":"Startup costs","group":"Your money in the deal","definition":"These are the initial expenses required to get a new business, or a newly acquired one, operational. For an acquisition, they often include working capital, initial inventory, and build-out expenses.","what_it_means":"While the 7(a) loan covers most acquisition costs, you'll still need funds for immediate post-closing expenses. This can include initial inventory restocking, leasehold improvements (build-out), or new equipment. Ensure your total project costs accurately account for these, as they impact your required equity injection.","url":"https://dealroom.so/glossary/startup-costs","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"}],"related":[{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"build-out","term":"Build-out","url":"https://dealroom.so/glossary/build-out"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"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":"Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/are-closing-costs-like-attorney-fees-eligible-to-be-part-of-the-project-costs-for-an-sba-l"},{"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"},{"question":"Can an SBA 7(a) loan be used to buy equipment for a new startup?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-buy-equipment-for-a-new-startup"}]},"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 costs","url":"https://dealroom.so/glossary/startup-costs","source_type":"DealRoom Data"}}