Glossary · The loan itself
In short
These are the funds disbursed from your SBA loan. They must be used for specific, approved purposes outlined in your loan authorization.
The SBA strictly defines how loan proceeds can be used. For an acquisition, proceeds typically cover the business purchase, working capital, inventory, and closing costs. Ensure every dollar of your loan has an approved "use of proceeds" to avoid issues with your lender and the SBA.
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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