General
What can I use a business loan for?
Written by
Alex Morgan · Head of Credit
Reviewed by
Betty Francis · Chief Compliance Officer
Last reviewed
June 12, 2026
Short Answer
Most legitimate business uses: working capital, equipment, real estate, acquisitions, refinancing, expansion, build-out, inventory, payroll. SBA 7(a) excludes passive investment, gambling, and lending businesses.
Detail
Use of funds is one of the first questions in underwriting. Inflection Financing funds: working capital and payroll, inventory, equipment and machinery, vehicles, leasehold improvements, build-out, commercial real estate purchase or refinance, business acquisition and partner buyouts, refinancing high-cost debt, technology and software, marketing and growth. SBA 7(a) specifically excludes: passive real estate investment, gambling, lending or investment businesses, religious institutions, and businesses owned by people on probation or parole.
Key facts
- Allowed: working capital, equipment, real estate, acquisitions, refinancing
- SBA-excluded: passive investment, gambling, lending, multi-sales-pyramid
- Use must be documented in the loan application
- Loan proceeds cannot be used to pay distributions to owners
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