SBA 7(a) Q&A
Short answer
Yes, reasonable costs associated with a seller's training period for the buyer can typically be financed within the working capital component of an SBA 7(a) loan.
Costs for a reasonable transition and training period by the seller are considered legitimate business expenses that contribute to the successful transfer of ownership and operation. These can be included as part of the overall acquisition costs or working capital.
A buyer agrees to pay the seller $10,000 for a two-month training and transition period after closing. This $10,000 can be included in the SBA 7(a) loan's working capital or acquisition cost allocation.
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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