Glossary · Your money in the deal
Contributed Equipment
In short
This is machinery or other assets you already own and contribute to the acquired business instead of cash, counting towards your equity injection. It's a way to meet SBA equity requirements without depleting your cash.
What it means in a deal
The SBA allows the fair market value of unencumbered, business-related equipment that you own to count towards your equity injection. You'll need an independent appraisal to establish its value. This is a common strategy for buyers who already own relevant equipment, but ensure it's truly unencumbered and directly useful to the business's operations.
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 Contributed Equipment
- How does the SBA evaluate the value of contributed equipment for equity injection?
- How does the SBA evaluate the value of contributed equipment for equity injection in a business acquisition?
- How does the SBA verify the value of contributed equipment for equity injection in a 7(a) loan?
- Can the value of equipment already owned by the borrower and contributed to the new business count towards the required equity injection?
- How does the SBA verify the fair market value of assets contributed as equity injection?
- How does a lender verify the value of contributed real estate for equity injection purposes?
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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