{"ok":true,"canonical_url":"https://dealroom.so/glossary/buyer-equity","api_url":"https://dealroom.so/api/public/glossary/buyer-equity","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":"buyer-equity","term":"Buyer Equity","group":"Your money in the deal","definition":"This is the cash or other assets you contribute to the deal as your required Equity injection. It's your personal stake in the business.","what_it_means":"Your Equity injection typically needs to be at least 10% of the Total project costs for a Business acquisition loan. This Buyer equity must come from Seasoned funds or be verifiable through Gift letter or Home equity line of credit. It proves your commitment and reduces lender risk.","url":"https://dealroom.so/glossary/buyer-equity","official_sources":[{"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"},{"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"}],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"gift-letter","term":"Gift letter","url":"https://dealroom.so/glossary/gift-letter"}],"related_questions":[{"question":"Besides cash and seller notes, what other buyer contributions qualify for equity?","url":"https://dealroom.so/sba-7a/questions/besides-cash-and-seller-notes-what-other-buyer-contributions-qualify-for-equity"},{"question":"Can a buyer's existing personal vehicle with significant equity be included as part of the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-buyer-s-existing-personal-vehicle-with-significant-equity-be-included-as-part-of-the"},{"question":"Does the 10% equity injection need to be entirely cash from the buyer?","url":"https://dealroom.so/sba-7a/questions/does-the-10-equity-injection-need-to-be-entirely-cash-from-the-buyer"},{"question":"What is the minimum cash a buyer must personally contribute to the equity injection?","url":"https://dealroom.so/sba-7a/questions/what-is-the-minimum-cash-a-buyer-must-personally-contribute-to-the-equity-injection"},{"question":"Can a buyer's existing business assets be counted as equity injection for an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-buyer-s-existing-business-assets-be-counted-as-equity-injection-for-an-acquisition"},{"question":"What is the minimum buyer equity injection percentage required for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-minimum-buyer-equity-injection-percentage-required-for-an-sba-7-a-acquisition-"}]},"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 — Buyer Equity","url":"https://dealroom.so/glossary/buyer-equity","source_type":"DealRoom Data"}}