SBA 7(a) Q&A
Short answer
Yes, if the business operates from a leased property, an SBA 7(a) loan's working capital component can typically finance a security deposit required for the lease.
A security deposit for a leased business property is considered a necessary operating expense for the business. As such, it can be included within the working capital portion of an SBA 7(a) loan, provided it's reasonable and customary.
A buyer acquiring a business agrees to a new lease with a $10,000 security deposit. This $10,000 can be included in the working capital request of the SBA 7(a) loan for the acquisition.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. 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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