{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-out","api_url":"https://dealroom.so/api/public/glossary/cash-out","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-out","term":"Cash-out","group":"The loan itself","definition":"In an SBA context, this typically refers to refinancing existing debt where a portion of the new loan proceeds goes directly to the borrower for personal use or working capital beyond the refinance.","what_it_means":"The SBA generally restricts \"cash-out\" transactions, especially for personal enrichment. Most 7(a) acquisition loans are for specific business purposes like purchase price, working capital, or equipment. If you're looking to extract funds, understand the strict limitations and permissible uses of proceeds to ensure eligibility.","url":"https://dealroom.so/glossary/cash-out","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":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"refinancing","term":"Refinancing","url":"https://dealroom.so/glossary/refinancing"},{"slug":"business-debt-refinancing","term":"Business debt refinancing","url":"https://dealroom.so/glossary/business-debt-refinancing"}],"related_questions":[{"question":"Can cash-out loan proceeds go to the remaining owner in a buyout?","url":"https://dealroom.so/sba-7a/questions/can-cash-out-loan-proceeds-go-to-the-remaining-owner-in-a-buyout"},{"question":"Can a cash-out refinance of my personal home count as equity injection for an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-cash-out-refinance-of-my-personal-home-count-as-equity-injection-for-an-acquisition"},{"question":"Can a borrower use a cash-out refinance from personal real estate for the equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-use-a-cash-out-refinance-from-personal-real-estate-for-the-equity-injection"},{"question":"Can funds from a cash-out refinance of my investment property count towards my SBA 7(a) down payment?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-cash-out-refinance-of-my-investment-property-count-towards-my-sba-7-a-dow"},{"question":"Are there specific restrictions on the maximum amount of cash-out allowed to the seller in an SBA 7(a) acquisition?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-restrictions-on-the-maximum-amount-of-cash-out-allowed-to-the-seller-in"},{"question":"If I am buying out a partner, does the SBA require the business to pass a cash flow test post-acquisition?","url":"https://dealroom.so/sba-7a/questions/if-i-am-buying-out-a-partner-does-the-sba-require-the-business-to-pass-a-cash-flow-test-po"}]},"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-out","url":"https://dealroom.so/glossary/cash-out","source_type":"DealRoom Data"}}