Glossary · Your money in the deal
Risk Capital
In short
The portion of a business's funding that is at the highest risk, typically the owner's personal investment (equity injection). It's money you stand to lose if the business fails.
What it means in a deal
For an SBA 7(a) loan, your equity injection serves as your risk capital, demonstrating your commitment to the business. The SBA requires a minimum equity injection, typically 10-15% of total project costs, to ensure you have "skin in the game." Lenders will scrutinize the source and seasoning of these funds.
Related terms
Common questions about Risk Capital
- Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program loan?
- What kind of everyday expenses can working capital cover?
- Can an SBA 7(a) loan finance working capital?
- What is the typical repayment term for working capital only?
- Can working capital be used for unexpected business expenses after closing?
- What does 'working capital' mean 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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