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  2. SBA 7(a) Small Business Loans

How can I use the funds received from an SBA 7(a) Working Capital Loan for my business? Can they be for one use or multiple uses?

One of the key advantages of 7(a) working capital loans is that they can be used to cover a wide variety of expenses. Funds may be used on the following categories: 

  1. Payroll – This includes salaried, hourly, part-time, and 1099 employees.  
  2. Operating Expenses – This includes short-term expenses such as marketing, membership programs, inventory purchases, and day-to-day expenses.
  3. Rent
  4. Utilities – This includes all utility expenses incurred by a business.  

Note: The funds from the loan may be used on one category or may be split among multiple categories.