Glossary · The loan itself
In short
This refers to using loan funds to cover day-to-day operational expenses like inventory, payroll, or accounts payable. It ensures the business has enough liquidity post-acquisition.
An SBA 7(a) loan can include funds for Working capital purposes to ensure a smooth transition and cover initial operating costs. This is crucial for businesses that might experience a dip in cash flow immediately after a change of ownership. Clearly define this need in your Use of proceeds.
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.
Free · No documents · Usually same-day