Glossary · Your money in the deal
Buyer Equity
In short
This is the cash or other assets you contribute to the deal as your required Equity injection. It's your personal stake in the business.
What it means in a deal
Your Equity injection typically needs to be at least 10% of the Total project costs for a Business acquisition loan. This Buyer equity must come from Seasoned funds or be verifiable through Gift letter or Home equity line of credit. It proves your commitment and reduces lender risk.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Buyer Equity
- Besides cash and seller notes, what other buyer contributions qualify for equity?
- Can a buyer's existing personal vehicle with significant equity be included as part of the equity injection?
- Does the 10% equity injection need to be entirely cash from the buyer?
- What is the minimum cash a buyer must personally contribute to the equity injection?
- Can a buyer's existing business assets be counted as equity injection for an acquisition?
- What is the minimum buyer equity injection percentage required for an SBA 7(a) acquisition loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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