# Can an SBA loan pay off a personal card used for business?

**Short answer:** Possibly. SOP 50 10 8.1, App. 14, Para. A.1.c turns on how the debt was used, not whose name is on the card. You must certify the amount was used exclusively for the business. Lender policy varies, and 504 refinancing requires the card in the business's name.

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Last checked: 2026-11-08

It can, if the debt was used for the business. Appendix 14, Paragraph A.1.c of SOP 50 10 8.1 covers credit card debt used for business expenses. It does not say the card must be issued in the business's name.

## What the lender looks at

The lender must include a copy of the most recent statement "evidencing the holder of the account and the current balance" (App. 14, Para. A). So the lender will see whose name is on the card.

You must certify that the debt was used exclusively for the business and for no ineligible purpose (13 CFR 120.130). A mixed card is the hard case. Appendix 14 gives no method for splitting personal and business charges in a 7(a) refinance.

## The 504 rule is stricter

In a 504 debt refinance without expansion, a card or line counts only if it is in the name of the small business. Personal purchases must be identified and deducted (Sec. C, Ch. 1, Para. C.10.a.iv).

## Why a lender may still say no

SBA's rule sets what a lender can do, not what it must do. A lender can apply its own credit policy to personal debt. Keep statements that show what the charges were, and ask before you count on this payoff.

## Sources

- [SOP 50 10 8.1, App. 14, Para. A, General Requirements, Para. A.1.c and supporting documentation (p. 355)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.130](https://www.ecfr.gov/current/title-13/section-120.130)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.10.a.iv, Eligible Business Expenses (Para. C begins p. 226)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)