SBA ExpressLoans
Get financing
SBA maximum rate by loan sizeas of Nov 10, 2026WSJ Prime7.00%to $50K13.50%to $250K13.00%to $350K11.50%over $350K10.00%

sbaexpress.loans is an independently owned and operated website and has no government affiliation. We are not the Small Business Administration and are not a lender. If you are trying to reach the SBA click here to be redirected.

Home / Answers / Use of proceeds / Can the use of proceeds change after SBA approval?

Can the use of proceeds change after SBA approval?

Janover Capital editorial team · Checked November 8, 2026

Short answer

Not on your own. The lender must disburse under the SBA Terms and Conditions (SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.3). Whether a change needs SBA approval or notice is set by SOP 50 57 and the 7(a) Lender Matrix, not SOP 50 10.

Not on your own. Use of Proceeds is one of the terms a lender submits to SBA in the SBA Terms and Conditions (SOP 50 10 8.1, Sec. B, Ch. 6, Para. A.3). The lender must disburse in accordance with those terms (Para. D.3.a).

SBA Form 1919 says proceeds will be used only for the business as approved by the lender and/or SBA.

How a change gets made

Section B, Chapter 6, Paragraph B covers post-approval modifications. It sends lenders to SOP 50 57 and the Servicing and Liquidation Actions 7(a) Lender Matrix. Those documents decide whether a change needs prior SBA approval or only notice. Lenders must not unilaterally approve actions that require prior SBA approval.

SOP 50 57 and the matrix are not part of the sources behind this page. Ask your lender which path applies to your change.

Debt payoff is tighter

If the loan refinances debt, the refinancing must be specifically identified in the Use of Proceeds section. Creditors receiving $10,000 or more must be itemized (App. 14, Para. A).

What happens when a line drifts

SBA's rule for a Working CapitalMoney for day-to-day costs such as payroll, rent and inventory. Full definition CAPLine shows the approach. If the line buys fixed assets, the lender must move that portion into an appropriate term facility (Sec. B, Ch. 4, Para. A.1.b). The deadline is 90 days after the lender discovers the use.

Tell your lender before you spend money differently from the approved plan.

Sources

  1. SOP 50 10 8.1, Sec. B, Ch. 6, Para. A, SBA Terms and Conditions (p. 202)
  2. SOP 50 10 8.1, Sec. B, Ch. 6, Para. B, Post-Approval Modifications (p. 205)
  3. SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.3, Closing Documentation (Para. D begins p. 207)
  4. SBA Form 1919 (02/2025), certifications
  5. SOP 50 10 8.1, App. 14, Para. A, General Requirements, SBA Terms and Conditions must include (p. 355)
  6. SOP 50 10 8.1, Sec. B, Ch. 4, Para. A.1.b, Working Capital CAPLines (p. 144)

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.

Start my loan request

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.

Get financing