Glossary · Your money in the deal
Capital Injection
In short
This is the total amount of cash or eligible assets you put into the business to fund the acquisition and provide working capital. The SBA requires a minimum capital injection, typically 10-20% of the total project cost.
What it means in a deal
Your capital injection is your skin in the game, demonstrating commitment and reducing lender risk. It must come from verifiable, "seasoned" sources like personal savings, gifts, or a seller note on full standby. The SBA scrutinizes the source of these funds, so be prepared to provide bank statements and other documentation to prove their origin and availability.
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 Capital Injection
- Can the seller's contribution of working capital count towards my minimum equity injection?
- Can a commitment to inject additional working capital after closing count towards my equity injection?
- If I plan to inject operating capital into the business after closing, can that count towards my equity injection?
- Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program loan?
- What kind of everyday expenses can working capital cover?
- Can an SBA 7(a) loan finance working capital?
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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