{"ok":true,"canonical_url":"https://dealroom.so/glossary/relending","api_url":"https://dealroom.so/api/public/glossary/relending","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":"relending","term":"Relending","group":"The loan itself","definition":"This is using SBA loan proceeds to provide funds to another business or individual, which is a prohibited use of funds.","what_it_means":"SBA 7(a) loans are meant to finance the borrower's direct business needs, not to act as a bank for others. Using loan proceeds for relending, or for speculative investments, will render your loan ineligible. Ensure your use of proceeds clearly aligns with direct operational or acquisition costs of the business you are buying.","url":"https://dealroom.so/glossary/relending","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":"circular-financing","term":"Circular Financing","url":"https://dealroom.so/glossary/circular-financing"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[]},"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 — Relending","url":"https://dealroom.so/glossary/relending","source_type":"DealRoom Data"}}