For SBA lenders
Short answer
It depends on the business's specific needs and the lender's underwriting, but typically, a significant portion can be allocated to working capital, especially for acquisitions requiring immediate post-closing liquidity.
The SBA 7(a) program allows for working capital as an eligible use of proceeds. While there isn't a strict maximum percentage for working capital specifically in an acquisition, the amount must be justified by the business's operating needs and reflected in the project costs. Lenders must apply prudent lending standards to determine the appropriate amount of working capital.
A borrower acquires a service business for $800,000. The loan includes $100,000 for equipment, $600,000 for goodwill, and $300,000 for working capital. The $300,000 working capital, representing 30% of the $1,000,000 loan, is justified by seasonal cash flow needs and initial marketing expenses.
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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