Glossary · The loan itself
Proceeds
In short
These are the funds disbursed from your SBA loan. They must be used for specific, approved purposes outlined in your loan authorization.
What it means in a deal
The SBA strictly defines how loan proceeds can be used. For an acquisition, proceeds typically cover the business purchase, working capital, inventory, and closing costs. Ensure every dollar of your loan has an approved "use of proceeds" to avoid issues with your lender and the SBA.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Proceeds
- Are proceeds from personal investment sales eligible for equity injection?
- Can cash-out loan proceeds go to the remaining owner in a buyout?
- Can proceeds from selling personal stocks or mutual funds count towards my equity injection?
- Can I use proceeds from selling personal real estate as an equity injection after closing?
- Can I use proceeds from selling my primary residence as part of my equity injection?
- Can I use proceeds from the sale of personal crypto assets for my equity injection?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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