{"ok":true,"canonical_url":"https://dealroom.so/glossary/capital-contribution","api_url":"https://dealroom.so/api/public/glossary/capital-contribution","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-contribution","term":"Capital Contribution","aka":"Equity injection","group":"Your money in the deal","definition":"This is the cash you put into the deal yourself, distinct from the SBA loan. Lenders want to see you have skin in the game, demonstrating your commitment to the business.","what_it_means":"For a 7(a) loan, you generally need to inject at least 10% of the total project costs as equity. This often comes from your personal savings or a seller note on full standby. It's not just a number; it's a demonstration of your commitment and ability to manage risk.","url":"https://dealroom.so/glossary/capital-contribution","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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"seasoning-of-funds","term":"Seasoning of Funds","url":"https://dealroom.so/glossary/seasoning-of-funds"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"}],"related_questions":[{"question":"Can the seller's contribution of working capital count towards my minimum equity injection?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-s-contribution-of-working-capital-count-towards-my-minimum-equity-injection"},{"question":"Can an institutional investor's cash contribution count towards my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-an-institutional-investor-s-cash-contribution-count-towards-my-sba-7-a-equity-injectio"},{"question":"What is the typical down payment or equity contribution required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-down-payment-or-equity-contribution-required-for-an-sba-7-a-loan"},{"question":"Can a seller note be used to finance the entire seller's equity contribution to the buyer's business?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-used-to-finance-the-entire-seller-s-equity-contribution-to-the-buyer-"},{"question":"Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program loan?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-limits-on-the-amount-of-working-capital-that-can-be-included-in-a-7-a-w"},{"question":"What kind of everyday expenses can working capital cover?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-everyday-expenses-can-working-capital-cover"}]},"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 Contribution","url":"https://dealroom.so/glossary/capital-contribution","source_type":"DealRoom Data"}}