Glossary · Your money in the deal
Personal Funds
In short
Money you personally own and contribute to the business acquisition. Lenders scrutinize the source to ensure it's truly yours and unencumbered.
What it means in a deal
Your Personal Funds are a key part of the Equity Injection required for an SBA 7(a) loan. Lenders will require documentation, like bank statements, to "season" these funds, proving they've been in your account for at least two months and aren't disguised debt or round-tripped.
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 Personal Funds
- Can personal funds borrowed from a credit union against personal assets count towards my equity injection?
- Can I use SBA 7(a) loan funds for personal expenses?
- Can funds from a personal line of credit secured by non-personal real estate be equity injection?
- What documentation verifies funds for equity injection transferred from a personal investment account?
- What documentation is required to verify equity injection funds from a personal investment account?
- Can personal funds borrowed against assets not being acquired count as my 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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