{"ok":true,"canonical_url":"https://dealroom.so/glossary/post-disbursement-verification","api_url":"https://dealroom.so/api/public/glossary/post-disbursement-verification","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":"post-disbursement-verification","term":"Post-disbursement verification","group":"The loan itself","definition":"This is the process where the lender confirms that loan funds were used for their approved purpose after they've been paid out. The SBA requires this to prevent misuse of loan proceeds.","what_it_means":"After your 7(a) loan funds are disbursed, the lender conducts \"post-disbursement verification.\" They will confirm funds were used exactly as detailed in the \"SBA Loan Authorization\" for purposes like equipment or working capital. Retain clear records to prove proper \"use of proceeds.\"","url":"https://dealroom.so/glossary/post-disbursement-verification","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":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"},{"slug":"compliance","term":"Compliance","url":"https://dealroom.so/glossary/compliance"},{"slug":"audit-trail","term":"Audit trail","url":"https://dealroom.so/glossary/audit-trail"}],"related_questions":[{"question":"After SBA 7(a) loan approval, what's the typical timeframe for closing and disbursement?","url":"https://dealroom.so/sba-7a/questions/after-sba-7-a-loan-approval-what-s-the-typical-timeframe-for-closing-and-disbursement"},{"question":"If I receive a gift from a foreign relative for my down payment, what specific verification is needed?","url":"https://dealroom.so/sba-7a/questions/if-i-receive-a-gift-from-a-foreign-relative-for-my-down-payment-what-specific-verification"},{"question":"How does a lender resolve an E-Tran error where the authorized loan amount is incorrect after approval but before disbursement?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-resolve-an-e-tran-error-where-the-authorized-loan-amount-is-incorrect-af"},{"question":"Who typically owns the life insurance policy on a seller post-acquisition?","url":"https://dealroom.so/sba-7a/questions/who-typically-owns-the-life-insurance-policy-on-a-seller-post-acquisition"},{"question":"What duration of post-acquisition operating expenses can working capital typically cover?","url":"https://dealroom.so/sba-7a/questions/what-duration-of-post-acquisition-operating-expenses-can-working-capital-typically-cover"},{"question":"Can working capital funds be used for post-acquisition marketing and advertising campaigns?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-funds-be-used-for-post-acquisition-marketing-and-advertising-campaigns"}]},"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 — Post-disbursement verification","url":"https://dealroom.so/glossary/post-disbursement-verification","source_type":"DealRoom Data"}}