If you obtain an SBA loan – specifically a 7(a) loan, you can use the loan proceeds to help finance a great variety of business expenses. However, there are a few restrictions. For instance, loan funds can’t be used to purchase an asset to maintain for its potential increased value or to reimburse an owner for the money they previously put into their business.
Basic uses for 7(a) loan proceeds include:
- To pay operational expenses, accounts payable and/or to purchase inventory;
- To pay contract performance, construction financing and exporting;
- To purchase equipment, machinery, furniture, fixtures, supplies or materials;
- To purchase real estate, including land and buildings;
- To construct a new building or renovate an existing building;
- To establish a new business or assist in the acquisition, operation or expansion of an existing business;
- To refinance existing business debt, under certain conditions.
This video explains the 7(a) loan more. If you’re in default on your 7(a) loan or are in danger of defaulting you need to contact an SBA attorney immediately. Get a FREE case evaluation here or call 888-756-9969. Don’t face the SBA alone, get qualified SBA assistance from an SBA attorney today.