What can you spend an SBA microloan on?
Short answer
You can spend it on working capital and the purchase of materials, supplies, furniture, fixtures and equipment, under 13 CFR § 120.707(a). SBA's page also names inventory and machinery. You cannot use a microloan to pay existing debts or buy real estate.
Microloans cover working capitalMoney for day-to-day costs such as payroll, rent and inventory. Full definition and smaller business purchases. 13 CFR § 120.707(a) limits proceeds to working capital and the purchase of materials, supplies, furniture, fixtures and equipment. A borrower can also use proceeds to establish a nonprofit childcare business.
Examples SBA gives
SBA's microloan page (read November 8, 2026) lists working capital, inventory, supplies, furniture, fixtures, machinery and equipment.
What is excluded
SBA's page says microloan proceeds cannot be used to:
- Pay existing debts.
- Purchase real estate.
If you need to refinance or buy property
A 7(a) loan can refinance certain business debts under SOP 50 10 8.1, Appendix 14. A 7(a) or 504 loan can finance owner-occupied real estate. A microloan cannot fill those roles.
Limits from other rules
An intermediary can lend only to small businesses eligible for SBA financial assistance under Part 120 (13 CFR § 120.707(a)). The ineligible business types in 13 CFR § 120.110 still apply.
Ask the intermediary
SBA says intermediaries make all credit decisions and set all terms. An intermediary's own rules may be narrower than the regulation. Tell it what the money will buy before you apply.
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.