Can an SBA loan pay for software or AI tools?
Short answer
Yes, on a 7(a) loan. SOP 50 10 8.1, Sec. A, Ch. 3, Para. A.2.d.i lets working capital pay for business software and cloud services. SBA's 7(a) page also lists AI-related expenses alongside machinery and equipment.
Yes. Working capitalMoney for day-to-day costs such as payroll, rent and inventory. Full definition may be used to acquire or use business software or cloud computing services (SOP 50 10 8.1, Sec. A, Ch. 3, Para. A.2.d.i).
Examples SBA gives
- Business operations and delivery of products or services
- Processing, paying or tracking payroll
- Human resources, sales and billing
- Accounting, and tracking supplies, inventory, records and expenses
AI tools
SBA's 7(a) page lists "machinery and equipment, including AI-related expenses" among eligible uses. We read it on November 8, 2026. The SOP itself does not use the term AI.
How a lender classifies an AI purchase can change the maximum term. Working capital can run 10 years. Equipment can run 10 years, or up to 15 years if the IRS asset class useful life supports it (App. 17, Paras. A.1 and A.2). Ask which category your purchase falls under.
Limits
A 504 loan cannot fund software as working capital (13 CFR 120.884(d)). Buying from a company that you or another insider controls raises a separate issue. An entity in which an officer, director, key employee or more-than-20% owner owns at least 20% is an Associate under 13 CFR 120.10. Payments to an Associate are restricted (Sec. A, Ch. 3, Para. B.1).
Sources
- SOP 50 10 8.1, Sec. A, Ch. 3, Para. A, Eligible Uses of Proceeds, Para. A.2.d.i (p. 51)
- sba.gov/loans/7a-loans, read November 8, 2026
- SOP 50 10 8.1, App. 17, Paras. A.1 and A.2, Loan Maturity Requirements (p. 390)
- 13 CFR § 120.884
- 13 CFR § 120.10
- SOP 50 10 8.1, Sec. A, Ch. 3, Para. B, Restrictions on Uses of Proceeds, Para. B.1 (p. 53)
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.