Glossary · Your money in the deal
Private equity holding
In short
This is an investment in a private company, not publicly traded. For your SBA loan, you usually can't use these funds as your equity injection unless they are easily convertible to cash without restrictions.
What it means in a deal
Lenders need to see liquid, unencumbered cash for your equity injection. If your funds are tied up in private equity, you'll need to demonstrate you can convert them to cash at fair market value before closing. This often means selling the holding well in advance or proving it's as good as cash.
Official sources
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 Private equity holding
- Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?
- When does ownership by a private equity fund trigger affiliation for SBA size standard purposes?
- Can a bridge loan from a private lender count towards the buyer's required equity injection?
- Under what conditions does ownership by a private equity fund trigger affiliation for SBA size standard purposes?
- How does a lender verify equity injection funds from a borrower's investment account holding illiquid assets?
- Can a private investor provide a loan that counts as equity injection for 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.
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