Great question. You can use SBA loans for a wide variety of business uses. If you are using it to finance an acquisition then in general you need to use the SBA 7A loan prior to closing. But if you need access to working capital, equipment financing, tenant improvements, etc., you can apply for and receive SBA funding at any time during your business journey.

If you are looking to refinance the business acquisition debt post closing, if it is conventional debt or some sort of non-bank lender, you can do that at any time post closing. However, if it is seller debt, there is a two-year wait period before you can refinance any seller debt and you have to provide proof you have made your payments (if any were required) over the loan term.

The only issue with getting financing post closing, if you are seeking it for another purpose, is a lender might question why you need additional capital so quickly and they might want to see you have some performance owning and operating the company post closing. This is not an SBA requirement, but is something you might see from the lenders involved as they might be conservative in their underwriting.

I hope this helps answer your question. If you have more questions or need additional help, you can reach me here or directly at redacted Good luck!

Many thanks for your response. I'm wondering more in the case of closing with cash for a faster close, and then taking a loan after the deal is closed to remove some of the equity.