Glossary · Your money in the deal
Venture capital fund
In short
A type of fund that invests in startups and small businesses with high growth potential, typically in exchange for equity. These are not direct buyers using SBA loans.
What it means in a deal
A venture capital fund is a source of equity, not a borrower for an SBA 7(a) loan. If you're buying a business, you're the individual or small operating entity, not a large fund, using the SBA loan.
Related terms
Common questions about Venture capital fund
- Can an SBA 7(a) working capital component be used to fund the launch of a new product line?
- Can an SBA 7(a) loan specifically fund only working capital needs for a new business acquisition, without other uses?
- Can I use my business's retained earnings from a prior venture as equity injection?
- Can a past business failure or dissolution from a previous venture impact my SBA 7(a) eligibility?
- Can an investor fund my SBA 7(a) down payment?
- How does life insurance effectively fund a business buy-sell agreement?
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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