Glossary · Your money in the deal
Owner's Capital Contribution
In short
This is the cash or eligible assets you, as the buyer, put into the deal. It's your equity injection, demonstrating your commitment and reducing the overall loan amount.
What it means in a deal
The SBA requires a minimum owner's capital contribution, typically 10-20% of the total project cost. This can be cash, seller notes on full standby, or eligible assets. Document the source of these funds thoroughly to prove they are "seasoned" and "unencumbered."
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 Owner's Capital 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?
- Can a seller note be used to finance the entire seller's equity contribution to the buyer's business?
- What is the SBA's requirement for a buyer's post-closing working capital position?
- What is the typical down payment or equity contribution required for an SBA 7(a) loan?
- How does a lender confirm an owner's U.S. citizenship if they were born in a U.S. territory or abroad to U.S. parents?
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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