SBA 7(a) Q&A
Short answer
Working capital funds are typically disbursed at closing, or sometimes in stages, and are managed by the borrower for approved operational expenses, often requiring post-closing verification of usage.
Working capital included in an SBA 7(a) acquisition loan is intended to support the immediate operational needs and growth of the acquired business. Lenders often disburse these funds at closing, but may impose conditions or require receipts to verify the funds are used for approved purposes per the loan authorization.
A business acquisition includes $150,000 for working capital. The lender might disburse $75,000 at closing, with the remaining $75,000 released after the borrower submits invoices for approved operational expenses within the first 90 days.
Insider move
Lenders monitor the use of working capital to ensure it aligns with the stated purpose in the loan authorization and supports the business's operations, not for ineligible uses or excessive owner compensation.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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