Glossary · Your money in the deal
Startup Capital
In short
The initial money needed to launch a new business. For an acquisition, it refers to the funds required to get the acquired business running effectively post-closing.
What it means in a deal
While 7(a) loans cover acquisition costs, you often need additional working capital for immediate post-acquisition expenses or to implement your initial business plan. This capital comes from your equity injection. Ensure your financial projections account for sufficient working capital to avoid early cash flow issues.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Startup Capital
- Are SBA 7(a) loans only for very small, startup businesses?
- What if the business I'm acquiring is a startup with limited operating history?
- Are SBA 7(a) loans mainly for startup businesses, or also for existing ones?
- Does an SBA 7(a) loan cover the initial franchise fee and associated startup costs?
- Can an SBA 7(a) loan be used to buy equipment for a new startup?
- Is it harder to get an SBA 7(a) loan for a brand new startup business?
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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