{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-proceeds","api_url":"https://dealroom.so/api/public/glossary/loan-proceeds","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":"loan-proceeds","term":"Loan Proceeds","group":"The loan itself","definition":"These are the actual funds disbursed by the lender from your SBA 7(a) loan. They are strictly regulated and must be used for approved purposes outlined in the loan authorization.","what_it_means":"Your loan proceeds will be used to purchase the business, pay for eligible closing costs, fund working capital, and potentially refinance existing business debt. Any funds not used for these approved purposes are considered overfinancing. The lender tracks these disbursements closely to ensure compliance.","url":"https://dealroom.so/glossary/loan-proceeds","official_sources":[{"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"},{"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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"overfinancing","term":"Overfinancing","url":"https://dealroom.so/glossary/overfinancing"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"}],"related_questions":[{"question":"Are proceeds from personal investment sales eligible for equity injection?","url":"https://dealroom.so/sba-7a/questions/are-proceeds-from-personal-investment-sales-eligible-for-equity-injection"},{"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 proceeds from selling personal stocks or mutual funds count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-proceeds-from-selling-personal-stocks-or-mutual-funds-count-towards-my-equity-injectio"},{"question":"Can I use proceeds from selling personal real estate as an equity injection after closing?","url":"https://dealroom.so/sba-7a/questions/can-i-use-proceeds-from-selling-personal-real-estate-as-an-equity-injection-after-closing"},{"question":"Can I use proceeds from selling my primary residence as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-proceeds-from-selling-my-primary-residence-as-part-of-my-equity-injection"},{"question":"Can I use proceeds from the sale of personal crypto assets for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-proceeds-from-the-sale-of-personal-crypto-assets-for-my-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 — Loan Proceeds","url":"https://dealroom.so/glossary/loan-proceeds","source_type":"DealRoom Data"}}