Glossary · Reading the business
Project feasibility
In short
The assessment of whether a proposed business acquisition is practical and likely to succeed financially. Buyers care because it determines if the deal makes sense and if the business can support the new debt.
What it means in a deal
Your lender will conduct a thorough analysis of the project's feasibility, scrutinizing the business plan, financial projections, and your experience. You must present a compelling case that the business can generate enough cash flow to cover the SBA loan payments and provide you with a reasonable living.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Project feasibility
- What percentage of the project cost does the SBA typically expect as a down payment?
- Can I finance a significant leasehold improvement project with my SBA 7(a) acquisition loan?
- What documentation is required to amend a 7(a) loan authorization for a change in project costs?
- What is the maximum percentage of project costs that can be funded by an SBA 7(a) loan?
- Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?
- Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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