SBA 7(a) Q&A
Short answer
Yes, a portion of the SBA 7(a) loan allocated for working capital can be used to pay your salary as the new owner, provided it's reasonable and supports your living expenses.
Working capital funds are intended to support the business's operational needs, including owner's salary, during the initial post-acquisition period. The salary must be reasonable for the industry and role, and the business's cash flow projections must demonstrate the ability to support it without jeopardizing loan repayment.
If you acquire a small consulting firm with a $500,000 SBA loan and allocate $75,000 for working capital, you could draw a reasonable salary of $6,000 per month for the first few months until the business generates sufficient cash flow.
Insider move
Lenders ensure the owner's salary is reasonable, justified by the business's projected performance, and not excessive to the point of depleting crucial working capital. They assess this against the borrower's personal financial needs and the business's capacity.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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