Glossary · Your money in the deal
Permanent capital
In short
This refers to capital that is not expected to be repaid, typically your equity injection (down payment) in the business. It's critical because the SBA requires a minimum amount of your own permanent capital in the deal.
What it means in a deal
The SBA mandates a minimum equity injection, usually 10-15% of the total project cost, which must be "seasoned funds" or from "unencumbered" sources. This shows your commitment and reduces the lender's risk, making your deal more financeable.
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 Permanent capital
- Can a permanent resident apply for an SBA 7(a) loan?
- Should a business choose term or permanent life insurance for key person protection?
- Can a Qualified Alien without permanent residency obtain an SBA 7(a) loan?
- When is term life insurance more suitable than permanent life insurance for business protection?
- How does a lender verify the lawful permanent resident status of a non-citizen applicant?
- What specific documentation is required to verify a non-citizen owner's lawful permanent resident status?
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.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.