{"ok":true,"canonical_url":"https://dealroom.so/glossary/startup-loan","api_url":"https://dealroom.so/api/public/glossary/startup-loan","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-loan","term":"Startup loan","group":"The loan itself","definition":"A loan specifically for new businesses with no operating history or established revenue. SBA 7(a) loans are generally not designed for true startups, preferring businesses with proven cash flow.","what_it_means":"While the 7(a) program can technically fund some startups, lenders are highly risk-averse and prefer acquisitions of existing, profitable businesses. If the business you're buying has less than two years of solid financial history, it will be harder to get approved, as it may appear too much like a speculative venture.","url":"https://dealroom.so/glossary/startup-loan","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":"speculative-venture","term":"Speculative venture","url":"https://dealroom.so/glossary/speculative-venture"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"}],"related_questions":[{"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":"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":"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 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"},{"question":"Is it harder to get an SBA 7(a) loan for a brand new startup business?","url":"https://dealroom.so/sba-loans/basics/is-it-harder-to-get-an-sba-7-a-loan-for-a-brand-new-startup-business"},{"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"}]},"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 loan","url":"https://dealroom.so/glossary/startup-loan","source_type":"DealRoom Data"}}