SBA 7(a) Q&A
Short answer
No, generally, the SBA 7(a) loan proceeds cannot be used to repay business credit card debt incurred by the buyer during the acquisition process.
SBA loan proceeds are for specific eligible uses related to the business acquisition, working capital, or real estate. Personal credit card debt, or debt incurred by the buyer for initial acquisition-related expenses, is typically not an eligible use of loan funds. The equity injection is meant to cover such initial expenses if not part of the core acquisition cost.
If you used a personal credit card to pay for a $5,000 business valuation report during due diligence for your $600,000 acquisition, you would need to repay that from your personal funds, not from the SBA 7(a) loan proceeds.
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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