Glossary · Your money in the deal
Minimum Equity Injection
In short
This is the minimum amount of your own cash you must put into the deal. The SBA generally requires at least 10% of the total project cost to be your equity injection.
What it means in a deal
The SBA mandates a minimum equity injection to ensure you have "skin in the game." This must be verifiable, unencumbered personal funds or other approved sources, typically 10% of the total project cost for an acquisition. Lenders will rigorously verify the source and seasoning of these 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 Equity Injection
- Is there a minimum cash portion for the equity injection?
- What is the SBA's minimum equity injection requirement for a business acquisition?
- What expenses are specifically excluded from counting towards the minimum 10% equity injection?
- Can the seller's contribution of working capital count towards my minimum equity injection?
- What is the SBA's minimum required equity injection percentage for a business acquisition?
- What is the minimum equity injection (down payment) for an SBA 7(a) loan?
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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