• SBA 7A


SBA 7(a) Loan Proceeds

 
SBA 7(a) loans are used to establish a new business or to assist in the acquisition, operation,      or expansion of an existing business.

Eligible Use of 7(a) Loan Proceeds Include (Non-Exclusive):
• The purchase land or buildings, to cover new construction as well as expansion or  conversion of existing facilities
• The purchase of equipment, machinery, furniture, fixtures, supplies, or materials
• Long-term working capital, including the payment of accounts payable and/or the           purchase of inventory
• Short-term working capital needs, including seasonal financing, contract performance, construction financing and export production
• Financing against existing inventory and receivable under special conditions
• The refinancing of existing business indebtedness that is not already structured with  reasonable terms and conditions
• To purchase an existing business

SBA loans cannot be used for these purposes:
• To refinance existing debt where the lender is in a position to sustain a loss and SBA would take over that loss through refinancing
• To effect a partial change of business ownership or a change that will not benefit the    business
• To permit the reimbursement of funds owed to any owner, including any equity injection or injection of capital for the business’s continuance until the loan supported by SBA is disbursed
• To repay delinquent state or federal withholding taxes or other funds that should be held in trust or escrow
• For a non-sound business purpose