{"ok":true,"canonical_url":"https://dealroom.so/glossary/capital-at-risk","api_url":"https://dealroom.so/api/public/glossary/capital-at-risk","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":"capital-at-risk","term":"Capital at Risk","group":"Your money in the deal","definition":"This refers to the cash equity you inject into the business, plus any seller financing that is fully subordinated to the SBA loan. It's the portion of your investment that is not protected by senior debt.","what_it_means":"The SBA requires borrowers to have \"capital at risk\" in the deal, typically at least 10% of the total project cost. This shows your commitment and skin in the game. Ensure your down payment and any seller note meet the SBA's specific requirements for subordination to qualify as capital at risk.","url":"https://dealroom.so/glossary/capital-at-risk","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":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"subordinated-seller-note","term":"Subordinated Seller Note","url":"https://dealroom.so/glossary/subordinated-seller-note"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"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 — Capital at Risk","url":"https://dealroom.so/glossary/capital-at-risk","source_type":"DealRoom Data"}}