Glossary · Your money in the deal
Reserves
In short
Funds set aside by the buyer, often required by the lender, to cover unexpected expenses or provide a cushion during the initial operating period after acquisition. These are typically part of your equity injection.
What it means in a deal
Lenders often require a certain amount of working capital or cash reserves as part of your equity injection to ensure the business has sufficient liquidity post-closing. This shows you have a buffer for unforeseen operational costs or slower-than-expected revenue. Factor these into your overall cash outlay.
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
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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