Glossary · The loan itself
In short
This is a contract outlining the terms and conditions for a line of credit, allowing a business to draw funds up to a maximum amount, repay them, and redraw again. It's for working capital, not acquisition.
While an SBA 7(a) loan can include a working capital component, it's typically a term loan for the acquisition itself. An LOC Agreement is a separate instrument, usually for ongoing operational needs or seasonal fluctuations. Ensure you understand the distinction and how any working capital is structured.
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.
See which SBA lenders would fund your deal
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.
Free · No documents · Usually same-day