Glossary · Your money in the deal
Personal Investment(Equity Injection, Down Payment)
In short
This is the amount of your own money you contribute to the deal. The SBA requires a minimum personal investment, showing your commitment and reducing the loan amount.
What it means in a deal
For a 7(a) business acquisition, you typically need to inject at least 10% of the total project costs from your own seasoned funds. This equity injection is crucial for meeting SBA requirements and demonstrating your skin in the game.
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 Investment
- Are proceeds from personal investment sales eligible for 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 funds from a personal investment account, like a brokerage account, count towards equity injection?
- Can personal assets other than my home, like a personal investment account, be used as collateral for an SBA 7(a) loan?
- Can funds from a personal investment account, like stocks or bonds, be used for 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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