{"ok":true,"canonical_url":"https://dealroom.so/glossary/inventory-acquisition","api_url":"https://dealroom.so/api/public/glossary/inventory-acquisition","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":"inventory-acquisition","term":"Inventory Acquisition","group":"Reading the business","definition":"The purchase of a business's current stock of goods for sale. This is a common and eligible use of 7(a) loan proceeds when buying a business.","what_it_means":"As part of buying a business, you'll often acquire its inventory. The 7(a) loan can fund this, ensuring you have product to sell from day one. During due diligence, confirm the inventory's value, salability, and that it's not obsolete to avoid overpaying.","url":"https://dealroom.so/glossary/inventory-acquisition","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"eligible-use-of-proceeds","term":"Eligible Use of Proceeds","url":"https://dealroom.so/glossary/eligible-use-of-proceeds"}],"related_questions":[{"question":"Can an SBA 7(a) loan finance inventory immediately after a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-inventory-immediately-after-a-business-acquisition"},{"question":"How much working capital is typically approved for a service business acquisition with minimal inventory?","url":"https://dealroom.so/sba-7a/questions/how-much-working-capital-is-typically-approved-for-a-service-business-acquisition-with-min"},{"question":"Can an SBA 7(a) loan finance the purchase of initial inventory for a retail business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-purchase-of-initial-inventory-for-a-retail-business-acquis"},{"question":"How does a lender underwrite the value of inventory included in an SBA 7(a) business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-underwrite-the-value-of-inventory-included-in-an-sba-7-a-business-acquis"},{"question":"What are the specific requirements for valuing inventory and equipment in a business acquisition for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-valuing-inventory-and-equipment-in-a-business-acqui"},{"question":"What are the requirements for pledging inventory as collateral for an SBA 7(a) loan for a retail business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-pledging-inventory-as-collateral-for-an-sba-7-a-loan-for-a-r"}]},"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 — Inventory Acquisition","url":"https://dealroom.so/glossary/inventory-acquisition","source_type":"DealRoom Data"}}