Glossary · Your money in the deal
Personal Net Worth
In short
Your personal net worth is the total value of your assets minus your liabilities. Lenders assess it to determine your financial strength and capacity to withstand business risks, impacting your eligibility for an SBA loan.
What it means in a deal
For an SBA 7(a) loan, if your personal net worth (excluding your primary residence and retirement accounts) is $500,000 or more, you generally must inject 25% equity into the deal. This is a critical factor in the lender's credit decision and a key component of your personal financial statement.
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 Net Worth
- What is the specific personal net worth threshold that triggers a personal guaranty requirement for an owner?
- What if an owner's personal net worth is negative; are they still required to provide a personal guaranty?
- Can I use an SBA 7(a) loan to purchase a business with a negative net worth?
- Can an SBA 7(a) loan be used to purchase a business with a negative net worth?
- Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?
- What if my business has a negative net worth? Can I still get an SBA 7(a) loan?
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.