SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can include a working capital component, which can be used to purchase inventory for the acquired business post-closing.
Working capital is a permissible use of SBA 7(a) loan proceeds. It can cover various operating expenses, including inventory purchases, to ensure the business has sufficient liquidity immediately following the acquisition and during its transition period.
A buyer is acquiring a retail business for $800,000 and requires an additional $50,000 for immediate inventory replenishment. This $50,000 can be financed as part of the overall SBA 7(a) loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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