Glossary · Your money in the deal
Home Equity Loan
In short
This is a loan secured by the equity in your home. It's a common way for buyers to fund their equity injection for an SBA loan.
What it means in a deal
Using a home equity loan for your equity injection is generally acceptable to the SBA as it represents "seasoned funds" if taken out sufficiently in advance, or "out of pocket" if taken near closing. The loan is secured by your personal residence, not the acquired business. Ensure you understand the risks of leveraging your home.
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 Home Equity Loan
- 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?
- Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?
- How does using funds from a home equity line of credit affect my down payment?
- Can funds from a home equity line of credit be used for the down payment?
- Can a cash-out refinance of my personal home count as equity injection for an acquisition?
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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