Glossary · Your money in the deal
Equity injection verification
In short
This is the process where your lender confirms you have the required down payment (equity injection) and that these funds are eligible for the SBA loan. It ensures your commitment and financial capacity for the deal.
What it means in a deal
For an SBA 7(a) loan, you must show proof of your equity injection, typically 10-25% of the total project cost. Lenders verify the source of these funds, looking for "seasoned" funds from your bank or brokerage accounts. Avoid "round-tripped" funds or unverified gifts, as these will not count towards your injection.
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 injection verification
- If I receive a gift from a foreign relative for my down payment, what specific verification is needed?
- 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?
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.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
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