Yes. SBA does not allow working capital loan proceeds to be used to pay down existing debt, purchase fixed assets such as machinery and equipment, or for use in acquiring another business. Working capital funds also cannot be used to start a new business.
NEWITY LLC and its affiliates are not lenders participating in SBA’s 7(a) loan program. SBA 7(a) loans are ultimately processed and approved by a lender participant in SBA’s 7(a) loan program.