{"ok":true,"canonical_url":"https://dealroom.so/glossary/conventional-line-of-credit","api_url":"https://dealroom.so/api/public/glossary/conventional-line-of-credit","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":"conventional-line-of-credit","term":"Conventional Line of Credit","group":"The loan itself","definition":"This is a flexible loan product from a bank that allows a business to borrow, repay, and re-borrow up to a set limit, typically used for short-term working capital needs.","what_it_means":"An SBA 7(a) loan can't be used solely to refinance a conventional line of credit unless it's part of a larger business acquisition. If the business you're acquiring has one, assess if you'll need a new one to manage working capital post-acquisition.","url":"https://dealroom.so/glossary/conventional-line-of-credit","official_sources":[],"related":[{"slug":"line-of-credit","term":"Line of credit","url":"https://dealroom.so/glossary/line-of-credit"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"business-debt-refinancing","term":"Business debt refinancing","url":"https://dealroom.so/glossary/business-debt-refinancing"},{"slug":"conventional-loan","term":"Conventional loan","url":"https://dealroom.so/glossary/conventional-loan"}],"related_questions":[{"question":"Can I use a secured personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-secured-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can I use funds from a personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can funds from an unsecured personal line of credit be considered part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-an-unsecured-personal-line-of-credit-be-considered-part-of-my-equity-inject"},{"question":"Can funds from a home equity line of credit be used for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-my-equity-injection"},{"question":"How does using funds from a home equity line of credit affect my down payment?","url":"https://dealroom.so/sba-7a/questions/how-does-using-funds-from-a-home-equity-line-of-credit-affect-my-down-payment"},{"question":"Can funds from a home equity line of credit be used for the down payment?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-the-down-payment"}]},"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 — Conventional Line of Credit","url":"https://dealroom.so/glossary/conventional-line-of-credit","source_type":"DealRoom Data"}}