Glossary · The loan itself
In short
The specific purposes for which an SBA 7(a) loan can be used, as defined by SBA rules. Funds must directly support the business acquisition or its operations; using them for personal expenses is strictly prohibited.
SBA 7(a) loan proceeds are primarily for business acquisition, working capital, equipment, or real estate. You cannot use them to pay off personal debt, fund passive investments, or for speculative purposes. Your lender will scrutinize the entire project budget to ensure all uses align with SBA guidelines.
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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