{"ok":true,"canonical_url":"https://dealroom.so/glossary/working-capital-loan","api_url":"https://dealroom.so/api/public/glossary/working-capital-loan","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-loan","term":"Working Capital Loan","group":"The loan itself","definition":"This is a portion of your SBA loan specifically allocated to cover the day-to-day operating expenses of the business. It helps bridge the gap between sales and cash collection.","what_it_means":"Many SBA 7(a) acquisition loans include a working capital component, which can be essential for a smooth transition and post-acquisition growth. This isn't just for start-ups; even established businesses need cash to cover payroll, inventory, and other operating costs before revenue flows in. Ensure your 'Uses of Funds' includes a sufficient amount for working capital to avoid cash flow issues in the first few months.","url":"https://dealroom.so/glossary/working-capital-loan","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":"uses-of-funds","term":"Uses of Funds","url":"https://dealroom.so/glossary/uses-of-funds"},{"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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"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":"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":"What does 'working capital' mean for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-does-working-capital-mean-for-an-sba-7-a-loan"},{"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":"What is working capital, and can a 7(a) loan cover it?","url":"https://dealroom.so/sba-loans/basics/what-is-working-capital-and-can-a-7-a-loan-cover-it"}]},"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 Loan","url":"https://dealroom.so/glossary/working-capital-loan","source_type":"DealRoom Data"}}