# What can SBA Express loan proceeds be used for?

**Short answer:** Most eligible business purposes: working capital, equipment, real estate, inventory, a revolving line, debt refinancing and buying a business. Proceeds must be used exclusively for business purposes (SOP 50 10 8.1, Sec. A, Ch. 3; Sec. B, Ch. 2, Para. A).

Canonical page: https://www.sbaexpress.loans/answers/sba-express-use-of-proceeds/
Last checked: 2026-11-08

SBA Express proceeds can fund most eligible business purposes. They must be used exclusively for business-related purposes (SOP 50 10 8.1, Sec. B, Ch. 2, Para. A).

## Allowed uses

Sec. A, Ch. 3, Para. A lists what 7(a) proceeds can buy:

- Land and site improvements, as part of an eligible project.
- Buying, renovating, expanding or constructing buildings.
- Buying and installing fixed assets.
- Inventory, supplies and raw materials.
- Working capital for everyday operations, including business software.
- A revolving line of credit, which SBA Express permits.

SBA Express can also refinance debt under Appendix 14 and finance a change of ownership under Appendix 15 (Para. A.1 and A.2).

## Not allowed

Sec. A, Ch. 3, Para. B bars these uses:

- Payments or distributions to associates of the business, with limited exceptions.
- Floor plan financing.
- Property held primarily for future development, sale, lease or investment.
- Past-due payroll, sales or similar trust taxes.
- Paying a creditor in a position to sustain a loss that would shift to SBA.
- Debt owed to a Small Business Investment Company or New Markets Venture Capital Company.

Working capital proceeds may not refinance existing debt (Sec. A, Ch. 3, Para. A.2.d). Lenders may set narrower limits of their own.

## Sources

- [SOP 50 10 8.1, Sec. A, Ch. 3, Para. A (p. 51)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 3, Para. B (p. 53)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 2, Para. A (p. 125)](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 § 120.120](https://www.ecfr.gov/current/title-13/section-120.120)
- [13 CFR § 120.130](https://www.ecfr.gov/current/title-13/section-120.130)