SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can finance a reasonable period of seller training to facilitate the buyer's transition into the business.
To ensure a smooth transition and the buyer's success, the SBA permits the inclusion of funds for a seller training period as part of the working capital or acquisition costs. This typically covers the seller's compensation for a defined period (e.g., 2-6 months) while they train the new owner.
If you are buying a retail business for $450,000 and the seller agrees to stay on for 3 months at $5,000/month for training, the $15,000 for this training can be incorporated into your SBA 7(a) loan.
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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