Glossary · The loan itself
In short
This details exactly what the SBA loan money will be spent on, such as buying the business, inventory, or working capital. The SBA has strict rules on what the funds can be used for.
The SBA 7(a) loan proceeds must be used for eligible purposes, primarily the acquisition of the business, working capital, inventory, equipment, or real estate. Personal expenses or speculative investments are prohibited. This is detailed in your 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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