Glossary · Your money in the deal
Equity in real estate
In short
The portion of real estate value you own outright, calculated as its market value minus any outstanding mortgages or liens. This is a common source for your equity injection.
What it means in a deal
If you own commercial or personal real estate with sufficient equity, you can use it as collateral for your SBA 7(a) loan, potentially even as part of your equity injection if it's unencumbered. Be aware lenders will require an appraisal to confirm its value and a lien search to check for existing claims.
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 Equity in real estate
- What is the difference in repayment terms between real estate and non-real estate loans?
- What if I don't own any real estate or equipment in my business?
- Can I use proceeds from selling personal real estate as an equity injection after closing?
- How does a lender verify the value of contributed real estate for equity injection purposes?
- Are environmental questionnaires always required for real estate involved in an SBA 7(a) acquisition?
- What specific environmental review is required for commercial real estate included in an SBA 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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