Glossary · The loan itself
In short
In an SBA context, this typically refers to refinancing existing debt where a portion of the new loan proceeds goes directly to the borrower for personal use or working capital beyond the refinance.
The SBA generally restricts "cash-out" transactions, especially for personal enrichment. Most 7(a) acquisition loans are for specific business purposes like purchase price, working capital, or equipment. If you're looking to extract funds, understand the strict limitations and permissible uses of proceeds to ensure eligibility.
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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