Use of Proceeds and Total Proceeds

When there are no Parties added to the transaction, the Use of Proceeds table remains blank. To complete the Use of Proceeds section, you must add an operating company as either a borrower or guarantor.

By clicking Specify you can add the Use of Proceeds items.

Use the text fields to enter dollar amounts for one or more applicable Use of Proceeds categories.

Table 1. Use of Proceeds Categories
  • Purchase Equipment
  • Purchase Land
  • Purchase Land Improvements
  • Construct Building
  • Add to Existing Building
  • Renovate Existing Building
  • Leasehold Improvements Owned By Others
  • Leasehold Improvements Owned by Applicant
  • Working Capital
  • Export Working Capital
  • SBA Guaranty Fee
  • Purchase Inventory
  • Pay Trade or Accounts Payable
  • Purchase Business Asset
  • Purchase Business Stock
  • Refinance SBA Loan (Not Same Institution Debt)
  • Refinance SBA Loan (Same Institution Debt)
  • Purchase Furniture and Fixtures
  • Pay Notes Payable (not Same Institution Debt)
  • Pay Notes Payable (Same Institution Debt)
  • Support Standby Letter of Credit
  • Other

The Use of Proceeds section must be filled out to calculate the applicant's SBA loan payment.

Proceeds from a 7(a) loan may be used to start a new business or to support the operation, acquisition, or expansion of an existing business. Eligible use of proceeds include, but are not limited to:

  • purchase of land or buildings, to cover new construction as well as expansion or conversion of existing facilities
  • acquiring equipment, machinery, furniture, fixtures, supplies, or materials
  • long-term working capital, including the payment of accounts payable and/or for the purchase of inventory
  • refinancing existing business indebtedness that is not already structured with reasonable terms and conditions
  • short-term working capital needs, including:
    • seasonal financing
    • contract performance
    • construction financing
    • export production
    • financing against existing inventory and receivable under special conditions
  • purchasing an existing business

Total Proceeds

Total Proceeds automatically calculates the sum of all Use of Proceeds fields. It is also referred to as the Total Loan Amount or Loan Principal.