{"ok":true,"canonical_url":"https://dealroom.so/glossary/proceeds","api_url":"https://dealroom.so/api/public/glossary/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":"proceeds","term":"Proceeds","group":"The loan itself","definition":"These are the funds disbursed from your SBA loan. They must be used for specific, approved purposes outlined in your loan authorization.","what_it_means":"The SBA strictly defines how loan proceeds can be used. For an acquisition, proceeds typically cover the business purchase, working capital, inventory, and closing costs. Ensure every dollar of your loan has an approved \"use of proceeds\" to avoid issues with your lender and the SBA.","url":"https://dealroom.so/glossary/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":"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 — Proceeds","url":"https://dealroom.so/glossary/proceeds","source_type":"DealRoom Data"}}