SBA 7(a) Q&A
Short answer
There is no specific maximum percentage of an SBA 7(a) loan that can be allocated solely for post-acquisition working capital; it depends on the business's needs and the lender's underwriting.
The SBA does not set a fixed percentage limit on working capital within a 7(a) loan. The amount must be justified by the business's financial projections and operational needs. Lenders underwrite the loan to ensure all uses of proceeds are reasonable and necessary for the business's success and its ability to repay the loan.
A $500,000 SBA loan for an acquisition might include $400,000 for the purchase price and $100,000 (20%) for working capital if the business has significant inventory and payroll needs immediately post-acquisition. The justification would be based on detailed financial projections.
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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