SBA 7(a) Q&A
Short answer
Yes, the working capital component of an SBA 7(a) loan can be used for owner's salary or draws, provided it is reasonable and necessary for the business's operations and documented in the business plan.
Working capital is intended to support the business's ongoing operational needs, which can include reasonable compensation for the owner-operator. Lenders evaluate the proposed salary against industry standards and the business's projected cash flow to ensure it's sustainable.
A buyer acquiring a business plans to take a $6,000 monthly salary. If the SBA loan includes $100,000 in working capital, a portion of that can be allocated to cover the owner's initial salary until the business generates sufficient cash flow.
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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