Glossary · Your money in the deal
Minimum cash injection
In short
This is the lowest amount of your own funds (or approved equity) you must contribute to the total project costs of an SBA 7(a) business acquisition. As a buyer, you care because it sets the floor for how much cash you need to bring to the table.
What it means in a deal
For most SBA 7(a) business acquisitions, the minimum equity injection required is 10% of the total project costs. At least half of this (5%) must be liquid, seasoned funds from the buyer. The remaining portion can be a fully subordinated seller note or additional seasoned funds.
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 Minimum cash injection
- Is there a minimum cash portion for the equity injection?
- What is the minimum cash injection required from me for a business acquisition?
- What is the minimum cash injection usually required for an SBA 7(a) loan?
- What is the minimum cash a buyer must personally contribute to the equity injection?
- Must my minimum equity injection for an SBA 7(a) acquisition loan be entirely cash?
- What is the absolute minimum cash injection required for an SBA 7(a) business 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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