SBA 7(a) Q&A
Short answer
There is no specific maximum percentage for working capital within an acquisition loan; it must be justified by the business's needs and cash flow projections.
The amount of working capital must be reasonable and necessary for the business's operations post-acquisition. The lender will evaluate the business's historical working capital needs, cash flow cycles, and projected expenses to determine a justifiable amount.
If you are acquiring a $1,500,000 business and historical financials show a need for $200,000 in revolving working capital to manage inventory and payroll during seasonal dips, this amount would likely be acceptable if supported by projections. An arbitrary request for $500,000 without clear justification would not be.
Insider move
Lenders ensure that the working capital request is prudent and based on actual business needs, not just to pad the balance sheet or fund speculative activities. They require a detailed breakdown and justification for the requested amount.
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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