Glossary · Your money in the deal
Unsecured Personal Loan
In short
This is a loan based on your creditworthiness, not backed by collateral. It can be a source for your equity injection, but SBA rules have specific requirements.
What it means in a deal
If you use an unsecured personal loan for your equity injection, the SBA requires it to be "unconditional" – meaning no recourse to the business or its assets. It cannot be on "standby" if it's from a non-institutional lender. Be sure this type of financing complies with SBA equity injection rules.
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 Unsecured Personal Loan
- Can I use an unsecured personal loan from a bank to fund my equity injection?
- Can an unsecured personal loan from a friend be used as part of my equity injection?
- Can a buyer use an unsecured personal loan for their equity injection on an SBA 7(a) acquisition?
- Can funds from an unsecured personal line of credit be considered part of my equity injection?
- How should a lender verify an equity injection sourced from an unsecured personal loan from an unrelated third party?
- Can I use borrowed funds from a personal unsecured loan for my equity injection if I commit to repaying it later?
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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