Glossary · The loan itself
In short
A flexible loan that allows a business to borrow, repay, and re-borrow up to a certain limit as needed. It's often used for short-term working capital needs or managing seasonal fluctuations.
While the SBA 7(a) loan primarily funds the acquisition, a separate revolving line of credit (RLOC) can be crucial for ongoing operational liquidity. If the business has seasonal cash flow or needs to manage inventory, an RLOC provides flexibility. Discuss with your lender if the business needs this alongside the acquisition loan.
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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