Glossary · The loan itself
In short
This details exactly how the SBA loan proceeds will be spent, covering everything from the purchase price to working capital and fees. The SBA has strict rules on what funds can be used for.
Your lender will outline the total project costs and the specific uses for your SBA 7(a) loan proceeds in the SBA Loan Authorization. This includes the business acquisition, real estate, equipment, inventory, working capital, and closing costs. Ensure all your needs are covered and documented.
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.
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