For SBA lenders
Short answer
Yes, an SBA 7(a) working capital loan can be used to pay existing accounts payable of the acquired business at closing, provided they are legitimate and disclosed as part of the project costs.
Working capital proceeds from a 7(a) loan are intended for the general operating expenses of the business. This can include payment of legitimate, pre-existing trade payables of the acquired business, as these are necessary to ensure the business's smooth transition and continued operation post-acquisition. The use must be clearly detailed in the uses of funds.
A buyer is acquiring a business and needs $50,000 in working capital. This includes $30,000 to cover outstanding vendor invoices from the seller. The lender can approve this use of working capital as long as the payables are verified and disclosed.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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