{"ok":true,"canonical_url":"https://dealroom.so/glossary/uses-of-proceeds","api_url":"https://dealroom.so/api/public/glossary/uses-of-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":"uses-of-proceeds","term":"Uses of Proceeds","group":"The loan itself","definition":"This details exactly what the SBA loan money will be spent on, such as buying the business, inventory, or working capital. The SBA has strict rules on what the funds can be used for.","what_it_means":"The SBA 7(a) loan proceeds must be used for eligible purposes, primarily the acquisition of the business, working capital, inventory, equipment, or real estate. Personal expenses or speculative investments are prohibited. This is detailed in your SBA Loan Authorization.","url":"https://dealroom.so/glossary/uses-of-proceeds","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":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"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":"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"},{"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 a lender's responsibilities concerning the proper use of 7(a) loan proceeds by the borrower?","url":"https://dealroom.so/for-lenders/questions/what-are-a-lender-s-responsibilities-concerning-the-proper-use-of-7-a-loan-proceeds-by-the"}]},"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 Proceeds","url":"https://dealroom.so/glossary/uses-of-proceeds","source_type":"DealRoom Data"}}