{"ok":true,"canonical_url":"https://dealroom.so/glossary/capital-requirement","api_url":"https://dealroom.so/api/public/glossary/capital-requirement","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-requirement","term":"Capital requirement","group":"Reading the business","definition":"The capital requirement refers to the amount of financial resources a business needs to operate, grow, and meet its obligations. It covers both fixed assets and working capital.","what_it_means":"During due diligence, assess the business's ongoing capital requirements. Insufficient working capital or unexpected needs for new equipment can strain cash flow post-acquisition. Your equity injection and the loan proceeds must cover both the purchase price and adequate working capital.","url":"https://dealroom.so/glossary/capital-requirement","official_sources":[],"related":[{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"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":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"What is the SBA's requirement for a buyer's post-closing working capital position?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-s-requirement-for-a-buyer-s-post-closing-working-capital-position"},{"question":"Does the SBA have specific requirements for how working capital funds must be disbursed to the business?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-have-specific-requirements-for-how-working-capital-funds-must-be-disbursed-to"},{"question":"Is profitability a strict requirement for getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-profitability-a-strict-requirement-for-getting-an-sba-7-a-loan"},{"question":"Is a blanket lien on all business assets a standard SBA requirement?","url":"https://dealroom.so/sba-7a/questions/is-a-blanket-lien-on-all-business-assets-a-standard-sba-requirement"},{"question":"How is the equity injection requirement affected if I'm purchasing a franchise?","url":"https://dealroom.so/sba-7a/questions/how-is-the-equity-injection-requirement-affected-if-i-m-purchasing-a-franchise"},{"question":"Is the collateral requirement less strict for smaller SBA 7(a) loan amounts?","url":"https://dealroom.so/sba-loans/basics/is-the-collateral-requirement-less-strict-for-smaller-sba-7-a-loan-amounts"}]},"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 requirement","url":"https://dealroom.so/glossary/capital-requirement","source_type":"DealRoom Data"}}