SBA 7(a) Q&A
Short answer
Yes, SBA 7(a) loans can include a component for working capital to help cover operational expenses, inventory, or accounts receivable during the transition period after an acquisition.
Working capital is an eligible use of SBA 7(a) loan proceeds to ensure the newly acquired business has sufficient liquidity to operate smoothly. This is particularly important during a change of ownership when cash flows might be unpredictable or new strategies are being implemented.
A $1,200,000 business acquisition loan might include $1,000,000 for the purchase price and an additional $200,000 for working capital to fund inventory and initial operating costs for the first six months.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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