Glossary · The loan itself
In short
A flexible loan that allows a business to borrow, repay, and re-borrow up to a set limit. Buyers care because it's crucial for managing working capital, covering seasonal fluctuations, and handling unexpected operational expenses post-acquisition.
While an SBA 7(a) loan is primarily for acquisition, a separate, smaller SBA-guaranteed line of credit (like an SBA Express LOC) might be available for working capital. Understand if the business already has one and if you can maintain or obtain one. It's vital for operational liquidity after closing.
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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Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
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