Glossary · Your money in the deal
Restricted stock
In short
This is company stock that you can't sell or transfer for a specific period or until certain conditions are met. Lenders won't count restricted stock towards your required cash injection.
What it means in a deal
The SBA requires your equity injection to be unencumbered and readily available. Restricted stock doesn't meet this test because you can't freely convert it to cash. You'll need to find other liquid assets for your down payment.
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 Restricted stock
- Will acquiring a business in a restricted industry (e.g., gambling, passive investing) kill approval?
- What is the difference between an asset and stock purchase in a buyout?
- What if the value of my stock portfolio (for equity injection) drops before closing?
- Can an SBA 7(a) loan be used to buy stock or passive investments?
- What documentation is required to verify equity injection funds sourced from a personal stock sale?
- Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?
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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