{"ok":true,"canonical_url":"https://dealroom.so/glossary/contributed-equipment","api_url":"https://dealroom.so/api/public/glossary/contributed-equipment","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":"contributed-equipment","term":"Contributed Equipment","group":"Your money in the deal","definition":"This is machinery or other assets you already own and contribute to the acquired business instead of cash, counting towards your equity injection. It's a way to meet SBA equity requirements without depleting your cash.","what_it_means":"The SBA allows the fair market value of unencumbered, business-related equipment that you own to count towards your equity injection. You'll need an independent appraisal to establish its value. This is a common strategy for buyers who already own relevant equipment, but ensure it's truly unencumbered and directly useful to the business's operations.","url":"https://dealroom.so/glossary/contributed-equipment","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":"capital-injection","term":"Capital Injection","url":"https://dealroom.so/glossary/capital-injection"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"}],"related_questions":[{"question":"How does the SBA evaluate the value of contributed equipment for equity injection?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-value-of-contributed-equipment-for-equity-injection"},{"question":"How does the SBA evaluate the value of contributed equipment for equity injection in a business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-value-of-contributed-equipment-for-equity-injection-in-a-bus"},{"question":"How does the SBA verify the value of contributed equipment for equity injection in a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-verify-the-value-of-contributed-equipment-for-equity-injection-in-a-7-a-l"},{"question":"Can the value of equipment already owned by the borrower and contributed to the new business count towards the required equity injection?","url":"https://dealroom.so/for-lenders/questions/can-the-value-of-equipment-already-owned-by-the-borrower-and-contributed-to-the-new-busine"},{"question":"How does the SBA verify the fair market value of assets contributed as equity injection?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-the-fair-market-value-of-assets-contributed-as-equity-injection"},{"question":"How does a lender verify the value of contributed real estate for equity injection purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-value-of-contributed-real-estate-for-equity-injection-purpose"}]},"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 — Contributed Equipment","url":"https://dealroom.so/glossary/contributed-equipment","source_type":"DealRoom Data"}}