Glossary · Your money in the deal
Investment liquidation
In short
This refers to selling personal investments like stocks or mutual funds to fund your equity injection. It's a common way buyers gather the necessary down payment for an SBA loan.
What it means in a deal
When using investment liquidation for your equity injection, you'll need to provide brokerage statements showing the sale and the funds transferred to your bank account. Ensure the funds are "seasoned" – meaning they've been in your account long enough not to look like a new loan – or clearly document the liquidation process.
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 Investment liquidation
- 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 I get an SBA 7(a) loan for a real estate investment business?
- Can funds from a personal investment account, like a brokerage account, count towards equity injection?
- What is the required timeframe for a lender to submit a liquidation plan?
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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