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:
- Payroll – This includes salaried, hourly, part-time, and 1099 employees.
- Operating Expenses – This includes short-term expenses such as marketing, membership programs, inventory purchases, and day-to-day expenses.
- 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.