{"ok":true,"canonical_url":"https://dealroom.so/glossary/cash-equity","api_url":"https://dealroom.so/api/public/glossary/cash-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":"cash-equity","term":"Cash equity","group":"Your money in the deal","definition":"This is the portion of your down payment that comes directly from your personal cash or seasoned funds, not from other loans or retirement rollovers. It's a fundamental part of your equity injection.","what_it_means":"The SBA requires a minimum equity injection, and a significant portion must be \"unencumbered\" cash or seasoned funds. Lenders want to see your personal commitment through cash equity, demonstrating your financial stake and reducing their risk. This often comes from personal savings.","url":"https://dealroom.so/glossary/cash-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":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"}],"related_questions":[{"question":"Is there a minimum cash portion for the equity injection?","url":"https://dealroom.so/sba-7a/questions/is-there-a-minimum-cash-portion-for-the-equity-injection"},{"question":"Is my equity injection (down payment) always required to be cash?","url":"https://dealroom.so/sba-loans/basics/is-my-equity-injection-down-payment-always-required-to-be-cash"},{"question":"How does the SBA define 'unencumbered cash' for equity injection purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-unencumbered-cash-for-equity-injection-purposes"},{"question":"Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?","url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-"},{"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":"What forms of non-cash contributions can count towards the equity injection?","url":"https://dealroom.so/sba-loans/basics/what-forms-of-non-cash-contributions-can-count-towards-the-equity-injection"}]},"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 — Cash equity","url":"https://dealroom.so/glossary/cash-equity","source_type":"DealRoom Data"}}