Glossary · Your money in the deal
Equity Investment
In short
This is the money you personally put into the deal. It's your skin in the game, showing lenders you're committed to the business's success.
What it means in a deal
For an SBA 7(a) loan, you'll generally need an equity injection of 10-20% of the total project costs. This can come from cash, a seller note on full standby, or rolled-over equity from a previous business. Ensure your funds are seasoned and clearly documented.
Official sources
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 Investment
- Are proceeds from personal investment sales eligible for equity injection?
- What documentation verifies funds for equity injection transferred from a personal investment account?
- What documentation is required to verify equity injection funds from a personal investment account?
- Can funds from a personal investment account, like a brokerage account, count towards equity injection?
- Can funds from a personal investment account, like stocks or bonds, be used for my equity injection?
- How does a lender verify the liquidity of an equity injection from a borrower's investment account?
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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