SBA 7(a) Q&A
Short answer
The amount of working capital depends on the business's specific needs and repayment ability, typically covering operational expenses for the first few months post-acquisition. There isn't a fixed percentage, but it must be justified and documented.
SBA 7(a) loans can include a component for working capital to ensure the newly acquired business has sufficient liquidity for immediate operational expenses, inventory, and accounts receivable. This helps bridge the transition period. The amount must be reasonable and directly related to the business's projected cash flow and operational requirements, supported by detailed projections.
A buyer acquiring a manufacturing business for $1.5 million projects $250,000 in immediate working capital needs for inventory, payroll, and utilities for the first three months. The lender will review these projections, justify the $250,000, and include it as part of the total SBA 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 2026-06-14. 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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