Glossary · Your money in the deal
Working Capital Injection
In short
This is part of your equity injection specifically designated to fund the business's immediate operational needs after acquisition, like inventory or payroll. It's often required by the SBA.
What it means in a deal
Beyond the down payment for the purchase price, the SBA often requires a portion of your equity injection to be set aside for working capital. This ensures the business has enough liquidity to operate smoothly post-acquisition, covering initial expenses or unforeseen needs. This isn't optional; it's a condition of the loan.
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 Working Capital Injection
- Can the seller's contribution of working capital count towards my minimum equity injection?
- Can a commitment to inject additional working capital after closing count towards my equity injection?
- 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?
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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