Glossary · The loan itself
In short
This is the process where the lender confirms that loan funds were used for their approved purpose after they've been paid out. The SBA requires this to prevent misuse of loan proceeds.
After your 7(a) loan funds are disbursed, the lender conducts "post-disbursement verification." They will confirm funds were used exactly as detailed in the "SBA Loan Authorization" for purposes like equipment or working capital. Retain clear records to prove proper "use of proceeds."
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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