Glossary · The loan itself
In short
This refers to the requirement that SBA loan funds must be used exclusively to start, acquire, or expand a legitimate for-profit business, not for personal use.
Every dollar of your SBA loan must serve a clear business purpose, which is scrutinized during underwriting. Personal expenses, speculative investments, or refinancing non-business debt are generally not allowed. Ensure your total project costs align with eligible business uses to secure your 7(a) loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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