Glossary · Your money in the deal
Cash injection
In short
This is the money you put into the deal, typically as your down payment and working capital. The SBA has specific rules on how much and where it comes from.
What it means in a deal
For an SBA 7(a) loan, your equity injection (cash injection) must be at least 10% of the total project costs, and sometimes more. You need to prove the funds are "seasoned" and come from eligible sources, meaning they weren't borrowed. The lender will review your bank and brokerage statements.
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 Cash injection
- Is there a minimum cash portion for the equity injection?
- Is my equity injection (down payment) always required to be cash?
- How does the SBA define 'unencumbered cash' for equity injection purposes?
- Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?
- What forms of non-cash contributions can count towards the equity injection?
- What documentation is needed to verify the source of my cash equity injection?
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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