{"ok":true,"canonical_url":"https://dealroom.so/glossary/at-risk-capital","api_url":"https://dealroom.so/api/public/glossary/at-risk-capital","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"at-risk-capital","term":"At-Risk Capital","group":"Your money in the deal","definition":"The portion of your investment in a business that is not protected by guarantees or collateral, meaning you could lose it if the business fails.","what_it_means":"The SBA requires borrowers to have \"at-risk\" equity in the deal, meaning your equity injection cannot be repaid or protected by a standby agreement that acts like a debt. This ensures you have skin in the game. Your personal guarantee also represents significant at-risk capital.","url":"https://dealroom.so/glossary/at-risk-capital","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"standby-agreement","term":"Standby agreement","url":"https://dealroom.so/glossary/standby-agreement"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"What if the business I'm acquiring has significant negative working capital at closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-significant-negative-working-capital-at-closing"},{"question":"How does negative working capital at the time of acquisition impact SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-negative-working-capital-at-the-time-of-acquisition-impact-sba-7-a-loan-eligibili"},{"question":"Is working capital from an SBA loan available immediately at closing for operational expenses and payroll?","url":"https://dealroom.so/sba-7a/questions/is-working-capital-from-an-sba-loan-available-immediately-at-closing-for-operational-expen"},{"question":"Can an existing business with significant negative working capital at closing still be eligible for a 7(a) acquisition loan?","url":"https://dealroom.so/for-lenders/questions/can-an-existing-business-with-significant-negative-working-capital-at-closing-still-be-eli"},{"question":"Can an SBA 7(a) working capital loan be used to pay off existing accounts payable of the acquired business at closing?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-working-capital-loan-be-used-to-pay-off-existing-accounts-payable-of-the-ac"},{"question":"What happens if the business being acquired has significant outstanding tax liabilities at closing?","url":"https://dealroom.so/for-lenders/questions/what-happens-if-the-business-being-acquired-has-significant-outstanding-tax-liabilities-at"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — At-Risk Capital","url":"https://dealroom.so/glossary/at-risk-capital","source_type":"DealRoom Data"}}