{"ok":true,"canonical_url":"https://dealroom.so/glossary/working-capital-line","api_url":"https://dealroom.so/api/public/glossary/working-capital-line","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":"working-capital-line","term":"Working Capital Line","group":"The loan itself","definition":"A flexible loan that provides funds for a business's day-to-day operations, such as inventory or payroll. It's often used to bridge gaps in cash flow.","what_it_means":"An SBA 7(a) loan can include a working capital component, especially for businesses with seasonal fluctuations or growth plans. This line of credit helps manage immediate cash needs without tying up long-term capital. Ensure your cash flow projections justify the amount requested and that it's used for eligible purposes.","url":"https://dealroom.so/glossary/working-capital-line","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":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"line-of-credit","term":"Line of credit","url":"https://dealroom.so/glossary/line-of-credit"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"financial-projections","term":"Financial projections","url":"https://dealroom.so/glossary/financial-projections"}],"related_questions":[{"question":"Can an SBA 7(a) working capital component be used to fund the launch of a new product line?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-working-capital-component-be-used-to-fund-the-launch-of-a-new-product-line"},{"question":"Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program loan?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-limits-on-the-amount-of-working-capital-that-can-be-included-in-a-7-a-w"},{"question":"What kind of everyday expenses can working capital cover?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-everyday-expenses-can-working-capital-cover"},{"question":"Can an SBA 7(a) loan finance working capital?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-working-capital"},{"question":"What is the typical repayment term for working capital only?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-repayment-term-for-working-capital-only"},{"question":"Can working capital be used for unexpected business expenses after closing?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-be-used-for-unexpected-business-expenses-after-closing"}]},"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 — Working Capital Line","url":"https://dealroom.so/glossary/working-capital-line","source_type":"DealRoom Data"}}