Glossary · Your money in the deal
Equity injection
In short
Your down payment, in SBA language. Minimum 10% of total project costs for a full business purchase.
What it means in a deal
Equity injection is SBA-speak for what you bring to the table. The SBA requires at least 10% of total project costs — not just the purchase price — to come from you, the seller (via a standby note), or both. The money must be sourced and seasoned: two months of bank statements showing where it came from. If you're short, a seller note on full standby can fill the gap — but only if it meets strict conditions laid out in SOP 50 10.
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 2026-06-16. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Equity injection
- Can funds from a home equity line of credit be used for my equity injection?
- Can I use funds from a home equity line of credit for my 10% equity injection?
- How is 'sweat equity' or future services treated for an SBA 7(a) loan equity injection?
- Can a business's retained earnings count as equity injection?
- Is there a minimum cash portion for the equity injection?
- Are proceeds from personal investment sales eligible for 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 2026-06-16 · 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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