Glossary · The loan itself
In short
Specific uses of SBA loan proceeds that are prohibited by regulation. Buying a business for speculative purposes or personal investments, for example, is not allowed.
Your lender will review the use of proceeds carefully to ensure all funds are for eligible business acquisition costs. Any portion of the loan for an ineligible purpose, even small, can jeopardize the entire SBA guaranty. Be transparent about how funds will be used.
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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