SBA 7(a) Q&A
Short answer
Working capital from an SBA 7(a) loan typically covers 3 to 12 months of post-acquisition operating expenses, depending on the business's specific needs, industry, and projected cash flow. The exact duration is determined by the lender's underwriting.
The SBA allows working capital to be used for general business purposes, including operational expenses, inventory, and seasonal needs. The amount and duration are assessed based on the business's financial projections and the lender's determination of what is prudent to support the business's stability and growth.
If the acquired business has monthly operating expenses of $15,000, a lender might approve $45,000 to $90,000 in working capital to cover 3 to 6 months of expenses, giving the new owner time to stabilize operations and generate revenue.
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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