Glossary · The loan itself
In short
This specifies exactly what the SBA loan funds can be spent on. The SBA has strict rules for eligible uses to ensure the money supports small business growth.
Your SBA loan can cover business acquisition costs, working capital, inventory, equipment, and real estate. It generally cannot be used for speculative investments or to refinance existing debt unless it meets specific criteria. Your lender will meticulously document every dollar's use in the SBA Loan Authorization.
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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