For SBA lenders
Short answer
The maximum amount of working capital included in a 7(a) acquisition loan is determined by the business's actual needs, justified by projections, and subject to prudent lending standards, not a fixed percentage.
SBA allows working capital to be included in a 7(a) loan to ensure the acquired business has sufficient liquidity post-acquisition. The amount must be reasonable and supported by detailed financial projections demonstrating the need for funds to cover operating expenses, inventory, or receivables during the initial post-acquisition period.
A borrower acquires a manufacturing business for $1,500,000. Based on cash flow projections and immediate operational needs, the lender approves an additional $200,000 for working capital within the 7(a) loan to cover inventory purchases and initial payroll for six months.
Insider move
Lenders must ensure the working capital amount is adequately justified and not excessive. The primary concern is that working capital is used for legitimate operational expenses of the acquired business, not to cover pre-existing seller liabilities or non-business purposes.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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