SBA 7(a) Q&A
Short answer
Yes, working capital financed through an SBA 7(a) loan can be used for essential post-acquisition operating expenses, including reasonable marketing and advertising campaigns.
Working capital is intended to provide funds for the day-to-day operations of the business. This includes general operating expenses necessary to maintain and grow the business, such as salaries, rent, utilities, inventory purchases, and legitimate marketing and advertising costs. The funds must be used for business purposes.
A buyer acquires a business with a $100,000 working capital component in their SBA loan. They plan a $20,000 marketing campaign to announce the new ownership and attract new customers. This use of funds is generally permissible as a valid working capital expense.
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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