{"ok":true,"canonical_url":"https://dealroom.so/glossary/revolving-line-of-credit","api_url":"https://dealroom.so/api/public/glossary/revolving-line-of-credit","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"revolving-line-of-credit","term":"Revolving Line of Credit","group":"The loan itself","definition":"A flexible loan that allows a business to borrow, repay, and re-borrow up to a certain limit as needed. It's often used for short-term working capital needs or managing seasonal fluctuations.","what_it_means":"While the SBA 7(a) loan primarily funds the acquisition, a separate revolving line of credit (RLOC) can be crucial for ongoing operational liquidity. If the business has seasonal cash flow or needs to manage inventory, an RLOC provides flexibility. Discuss with your lender if the business needs this alongside the acquisition loan.","url":"https://dealroom.so/glossary/revolving-line-of-credit","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":"line-of-credit","term":"Line of credit","url":"https://dealroom.so/glossary/line-of-credit"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"sba-express","term":"SBA Express","url":"https://dealroom.so/glossary/sba-express"}],"related_questions":[{"question":"Can I use a secured personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-secured-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can I use funds from a personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can funds from an unsecured personal line of credit be considered part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-an-unsecured-personal-line-of-credit-be-considered-part-of-my-equity-inject"},{"question":"Can funds from a home equity line of credit be used for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-my-equity-injection"},{"question":"How does using funds from a home equity line of credit affect my down payment?","url":"https://dealroom.so/sba-7a/questions/how-does-using-funds-from-a-home-equity-line-of-credit-affect-my-down-payment"},{"question":"Can funds from a home equity line of credit be used for the down payment?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-the-down-payment"}]},"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 — Revolving Line of Credit","url":"https://dealroom.so/glossary/revolving-line-of-credit","source_type":"DealRoom Data"}}