{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-a-change-in-the-purchase-price-during-due-diligence-significantly-delay-or-derail-the-","api_url":"https://dealroom.so/api/public/questions/can-a-change-in-the-purchase-price-during-due-diligence-significantly-delay-or-derail-the-","question":"Can a change in the purchase price during due diligence significantly delay or derail the SBA loan approval?","topic":"Application timeline","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, a significant change in the purchase price during due diligence can significantly delay or even derail SBA loan approval, as it may necessitate re-underwriting and re-evaluation.","rule":"The SBA loan approval is based on the initial purchase price and project costs. If the purchase price changes substantially, especially if it increases, the lender must re-evaluate the deal's financial viability, the adequacy of the equity injection, and potentially update the business valuation. This can trigger additional underwriting, revised loan documents, and potentially new SBA review, causing delays.","example":"You initially applied for a $1,000,000 acquisition. During due diligence, you discover an issue that drops the price to $800,000. While a lower price might seem positive, it still requires the lender to revise the loan structure, re-confirm the valuation, and adjust loan documents, which will add weeks to the timeline.","what_lenders_check":"Lenders need to ensure the loan amount is justified by the final purchase price and that all SBA rules are met. Any material change requires a formal amendment process, which consumes time and resources and introduces potential for new issues.","required_facts":["Purchase price change","Due diligence findings","Loan re-underwriting","Business valuation update","SBA review"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"What are the major stages of the SBA 7(a) loan application process, and how long does each typically take?","url":"https://dealroom.so/sba-7a/questions/what-are-the-major-stages-of-the-sba-7-a-loan-application-process-and-how-long-does-each-t"},{"question":"What role does the business broker play in expediting or delaying the SBA 7(a) loan application process for an acquisition?","url":"https://dealroom.so/sba-7a/questions/what-role-does-the-business-broker-play-in-expediting-or-delaying-the-sba-7-a-loan-applica"},{"question":"What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?","url":"https://dealroom.so/sba-7a/questions/what-factors-allow-a-lender-to-use-their-delegated-authority-e-g-preferred-lender-status-t"},{"question":"How long does the SBA 7(a) loan application process typically take from start to funding?","url":"https://dealroom.so/sba-7a/questions/how-long-does-the-sba-7-a-loan-application-process-typically-take-from-start-to-funding"},{"question":"What is the repayment term for an SBA 7(a) loan used for business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-repayment-term-for-an-sba-7-a-loan-used-for-business-acquisition"},{"question":"Do I need a business plan for an SBA 7(a) loan application for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/do-i-need-a-business-plan-for-an-sba-7-a-loan-application-for-a-business-acquisition"}],"related_terms":[{"term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"term":"Purchase price","url":"https://dealroom.so/glossary/purchase-price"},{"term":"Operational due diligence","url":"https://dealroom.so/glossary/operational-due-diligence"},{"term":"Legal due diligence","url":"https://dealroom.so/glossary/legal-due-diligence"},{"term":"Inadequate due diligence","url":"https://dealroom.so/glossary/inadequate-due-diligence"},{"term":"Heightened due diligence","url":"https://dealroom.so/glossary/heightened-due-diligence"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-a-change-in-the-purchase-price-during-due-diligence-significantly-delay-or-derail-the-","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}