{"ok":true,"canonical_url":"https://dealroom.so/glossary/use-of-funds","api_url":"https://dealroom.so/api/public/glossary/use-of-funds","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":"use-of-funds","term":"Use of funds","group":"The loan itself","definition":"This details exactly how the SBA loan proceeds will be spent, covering everything from the purchase price to working capital and fees. The SBA has strict rules on what funds can be used for.","what_it_means":"Your lender will outline the total project costs and the specific uses for your SBA 7(a) loan proceeds in the SBA Loan Authorization. This includes the business acquisition, real estate, equipment, inventory, working capital, and closing costs. Ensure all your needs are covered and documented.","url":"https://dealroom.so/glossary/use-of-funds","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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"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 I use funds from a home equity line of credit for my 10% equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-home-equity-line-of-credit-for-my-10-equity-injection"},{"question":"Can I use funds from a personal line of credit for my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-line-of-credit-for-my-sba-7-a-equity-injection"},{"question":"Can I use funds from the sale of my personal investments, like stocks, for my down payment?","url":"https://dealroom.so/sba-loans/basics/can-i-use-funds-from-the-sale-of-my-personal-investments-like-stocks-for-my-down-payment"},{"question":"Can I use funds from an inheritance received shortly before closing as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-an-inheritance-received-shortly-before-closing-as-part-of-my-equity-i"},{"question":"Can I use funds from a Certificate of Deposit (CD) that matures after closing for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-certificate-of-deposit-cd-that-matures-after-closing-for-my-equity-"}]},"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 — Use of funds","url":"https://dealroom.so/glossary/use-of-funds","source_type":"DealRoom Data"}}