Glossary · The loan itself
In short
These are the actual funds disbursed by the lender from your SBA 7(a) loan. They are strictly regulated and must be used for approved purposes outlined in the loan authorization.
Your loan proceeds will be used to purchase the business, pay for eligible closing costs, fund working capital, and potentially refinance existing business debt. Any funds not used for these approved purposes are considered overfinancing. The lender tracks these disbursements closely to ensure compliance.
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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