Use of 7(a) Loan Proceeds

7(a) Program Eligibility

You can use the loan proceeds to help finance a large variety of business purposes. However, there are a few restrictions. For example, proceeds can’t be used to buy an asset to hold 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 provide long-term working capital to use to pay operational expenses, accounts payable and/or to purchase inventory
  • Short-term working capital needs, including seasonal financing, 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

SBA loans cannot be used for these purposes:

  • To refinance existing debt where the lender is in a position to sustain a loss and SBA would take over that loss through refinancing
  • To affect a partial change of business ownership or a change that will not benefit the business
  • To permit the reimbursement of funds owed to any owner, including any equity injection or injection of capital to continue the business until the SBA-backed loan is disbursed
  • To repay delinquent state or federal withholding taxes or other funds that should be held in trust or escrow
  • For a purpose that is not considered to be a sound business purpose as determined by SBA

Tarzana Branch

19538 Ventura Blvd.

Tarzana, CA 91356

(818) 992-5661

Fax: (818) 992-5669

Jim Friend, V.P.

jfriend@ccombank.com

Monterey Park Branch

2323 S. Atlantic Blvd.

Monterey Park, CA 91754

(323) 268-6100

Fax: (323) 265-0342

Gene Aguilera, V.P.

gaguilera@ccombank.com

Se Habla Espanol

Claremont Branch

390 W. Foothill Blvd.

Claremont, CA 91711

(909) 625-7891

Fax: (909) 621-2512

AJ Jamal, V.P.

ajamal@ccombank.com

Mark Sakowski, VP

msakowski@ccombank.com

Victor Jacobs, V.P.

vjacob@ccombank.com

       

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