{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-advance","api_url":"https://dealroom.so/api/public/glossary/cash-advance","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":"cash-advance","term":"Cash Advance","aka":"Merchant Cash Advance","group":"The loan itself","definition":"A short-term loan, often with high fees and interest, typically secured by future receivables. The SBA generally disallows using 7(a) funds to pay off these predatory loans.","what_it_means":"If the target business has outstanding cash advances, your 7(a) loan cannot be used to pay them off. This type of debt is considered ineligible for refinancing with SBA funds due to its high cost and structure. The seller must resolve these prior to closing.","url":"https://dealroom.so/glossary/cash-advance","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":"business-debt-refinancing","term":"Business debt refinancing","url":"https://dealroom.so/glossary/business-debt-refinancing"},{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"}],"related_questions":[{"question":"Can a credit card cash advance be used for my down payment?","url":"https://dealroom.so/sba-loans/basics/can-a-credit-card-cash-advance-be-used-for-my-down-payment"},{"question":"Can I use funds from a personal credit card cash advance for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-credit-card-cash-advance-for-my-equity-injection"},{"question":"How does a lender verify equity injection from a borrower's personal credit card cash advance?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-from-a-borrower-s-personal-credit-card-cash-adva"},{"question":"Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?","url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-"},{"question":"Can cash in the business bank account count as collateral?","url":"https://dealroom.so/sba-loans/basics/can-cash-in-the-business-bank-account-count-as-collateral"},{"question":"Is there a minimum cash portion for the equity injection?","url":"https://dealroom.so/sba-7a/questions/is-there-a-minimum-cash-portion-for-the-equity-injection"}]},"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 — Cash Advance","url":"https://dealroom.so/glossary/cash-advance","source_type":"DealRoom Data"}}