SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can be used exclusively for working capital for a new business acquisition, covering initial operating expenses and ensuring liquidity.
Working capital is an eligible use of 7(a) loan proceeds. For business acquisitions, a portion or even the entire loan can be designated for working capital to support the business post-acquisition, covering inventory, operating expenses, and general liquidity as the new owner takes over.
A buyer acquires a consulting firm for $500,000, which has minimal tangible assets. An SBA 7(a) loan is approved for $500,000, with $400,000 for the acquisition and $100,000 specifically allocated for working capital to cover initial salaries and overhead.
Insider move
Lenders assess the adequacy of the requested working capital based on the business's historical performance, projections under new ownership, and the industry. They ensure the amount is justified to support successful post-acquisition operations.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
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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