SBA 7(a) Q&A
Short answer
Yes, the working capital portion of an SBA 7(a) loan can generally be used to pay existing accounts payable of the acquired business, helping to ensure a smooth transition.
Using working capital to cover legitimate, ordinary course of business accounts payable existing at the time of acquisition is an eligible use of SBA 7(a) loan proceeds. This helps the new owner manage initial cash flow and maintain good vendor relationships, ensuring the business continues operations without interruption.
If your $750,000 acquisition loan includes $75,000 for working capital, and the acquired business has $30,000 in overdue vendor invoices, you can use a portion of that $75,000 to clear those accounts payable immediately after closing.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
7(a) Working Capital Pilot Program Guide
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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