SBA 7(a) Q&A
Short answer
The maximum amount of working capital for your acquisition is determined by your business plan, historical financials, projected cash flow, and the lender's underwriting standards, up to the SBA's overall loan maximum.
While there's no fixed percentage, the working capital component must be justified by the business's needs outlined in the buyer's business plan. Lenders assess historical operating cycles, projected growth, inventory needs, and accounts receivable to determine a reasonable and necessary amount. The total loan, including working capital, cannot exceed the SBA's $5 million maximum.
A buyer acquiring a service business requests $150,000 in working capital. The lender reviews the business's previous 12 months of operating expenses, accounts receivable cycle, and the buyer's six-month post-acquisition projections. If justified by these analyses, the $150,000 can be included.
Insider move
Lenders scrutinize the justification for working capital requests to ensure funds are used prudently and for eligible purposes. They seek to prevent over-lending and ensure that the business has a realistic repayment capacity based on its cash flow.
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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