Glossary · Your money in the deal
Irrevocable contribution
In short
This means your capital contribution is permanently committed to the business and cannot be withdrawn. It assures the lender your equity is truly "at risk."
What it means in a deal
The SBA requires that your equity injection be irrevocable. This ensures the funds are a true capital contribution, not disguised debt or a temporary placement. Lenders verify that these funds are unencumbered and fully integrated into the business's capital structure.
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 Irrevocable contribution
- Can the seller's contribution of working capital count towards my minimum equity injection?
- Can an institutional investor's cash contribution count towards my SBA 7(a) equity injection?
- What is the typical down payment or equity contribution required for an SBA 7(a) loan?
- Can a seller note be used to finance the entire seller's equity contribution to the buyer's business?
- Besides cash and seller notes, what other buyer contributions qualify for equity?
- What forms of non-cash contributions can count towards 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.
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