{"ok":true,"canonical_url":"https://dealroom.so/glossary/uses-of-funds","api_url":"https://dealroom.so/api/public/glossary/uses-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":"uses-of-funds","term":"Uses of Funds","group":"The loan itself","definition":"This is a detailed breakdown of how the proceeds from your SBA loan will be spent. The SBA has strict rules on what these funds can and cannot be used for.","what_it_means":"Your SBA Loan Authorization will specify the exact 'Uses of Funds,' covering the purchase price, working capital, inventory, equipment, and eligible closing costs. You cannot use SBA loan funds for purposes like paying personal debts, speculative investments, or refinancing existing debt unless specifically allowed. Ensure your proposed uses align precisely with SBA guidelines, as any discrepancy can jeopardize your loan approval.","url":"https://dealroom.so/glossary/uses-of-funds","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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"working-capital-loan","term":"Working Capital Loan","url":"https://dealroom.so/glossary/working-capital-loan"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"}],"related_questions":[{"question":"What are the acceptable uses of 'working capital' funds from an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-are-the-acceptable-uses-of-working-capital-funds-from-an-sba-7-a-loan"},{"question":"Are marketing and advertising expenses allowed uses for 7(a) loan funds?","url":"https://dealroom.so/sba-loans/basics/are-marketing-and-advertising-expenses-allowed-uses-for-7-a-loan-funds"},{"question":"What if the business for sale uses proprietary software or a unique technology?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-for-sale-uses-proprietary-software-or-a-unique-technology"},{"question":"What are the specific eligible uses for working capital included in an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-specific-eligible-uses-for-working-capital-included-in-an-sba-7-a-acquisition"},{"question":"Can an SBA 7(a) loan specifically fund only working capital needs for a new business acquisition, without other uses?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-specifically-fund-only-working-capital-needs-for-a-new-business-acquis"},{"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"}]},"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 — Uses of Funds","url":"https://dealroom.so/glossary/uses-of-funds","source_type":"DealRoom Data"}}