SBA 7(a) Q&A
Short answer
Yes, inventory is an eligible use of working capital funds within an SBA 7(a) loan for a business acquisition.
SBA 7(a) loans can include funds for working capital, which can be used to purchase initial inventory for the acquired business. This ensures the business has necessary stock to operate immediately post-acquisition. The amount of working capital must be justified by the business's operational needs and projections.
You are acquiring a retail business for $800,000. The SBA 7(a) loan includes $100,000 for working capital, of which $70,000 is allocated to replenish and maintain adequate inventory levels for the first few months after closing.
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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