Glossary · Your money in the deal
Personal liquidity
In short
The amount of cash and easily convertible assets you have readily available. Lenders assess this to ensure you can cover your equity injection and post-closing working capital.
What it means in a deal
Lenders require proof of sufficient personal liquidity to cover the required equity injection and often a cushion for post-closing working capital. This typically comes from bank accounts, brokerage accounts, or funds readily accessible from retirement accounts (like through ROBS). Unencumbered funds are essential.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Personal liquidity
- How does a lender evaluate my personal liquidity for an SBA 7(a) loan?
- What if my personal liquidity is low, but the business's financials are very strong?
- What if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?
- What happens if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?
- What if my personal liquidity is low, but I have a substantial amount in my 401k that I can borrow against?
- How does a lender verify the liquidity of an equity injection from a borrower's investment account?
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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