{"ok":true,"canonical_url":"https://dealroom.so/glossary/capital-injection","api_url":"https://dealroom.so/api/public/glossary/capital-injection","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-injection","term":"Capital Injection","group":"Your money in the deal","definition":"This is the total amount of cash or eligible assets you put into the business to fund the acquisition and provide working capital. The SBA requires a minimum capital injection, typically 10-20% of the total project cost.","what_it_means":"Your capital injection is your skin in the game, demonstrating commitment and reducing lender risk. It must come from verifiable, \"seasoned\" sources like personal savings, gifts, or a seller note on full standby. The SBA scrutinizes the source of these funds, so be prepared to provide bank statements and other documentation to prove their origin and availability.","url":"https://dealroom.so/glossary/capital-injection","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":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-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 a commitment to inject additional working capital after closing count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-commitment-to-inject-additional-working-capital-after-closing-count-towards-my-equit"},{"question":"If I plan to inject operating capital into the business after closing, can that count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/if-i-plan-to-inject-operating-capital-into-the-business-after-closing-can-that-count-towar"},{"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"},{"question":"Can an SBA 7(a) loan finance working capital?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-working-capital"}]},"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 Injection","url":"https://dealroom.so/glossary/capital-injection","source_type":"DealRoom Data"}}