{"ok":true,"canonical_url":"https://dealroom.so/glossary/equity-in-real-estate","api_url":"https://dealroom.so/api/public/glossary/equity-in-real-estate","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":"equity-in-real-estate","term":"Equity in real estate","group":"Your money in the deal","definition":"The portion of real estate value you own outright, calculated as its market value minus any outstanding mortgages or liens. This is a common source for your equity injection.","what_it_means":"If you own commercial or personal real estate with sufficient equity, you can use it as collateral for your SBA 7(a) loan, potentially even as part of your equity injection if it's unencumbered. Be aware lenders will require an appraisal to confirm its value and a lien search to check for existing claims.","url":"https://dealroom.so/glossary/equity-in-real-estate","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":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"}],"related_questions":[{"question":"What is the difference in repayment terms between real estate and non-real estate loans?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-in-repayment-terms-between-real-estate-and-non-real-estate-loans"},{"question":"What if I don't own any real estate or equipment in my business?","url":"https://dealroom.so/sba-loans/basics/what-if-i-don-t-own-any-real-estate-or-equipment-in-my-business"},{"question":"Can I use proceeds from selling personal real estate as an equity injection after closing?","url":"https://dealroom.so/sba-7a/questions/can-i-use-proceeds-from-selling-personal-real-estate-as-an-equity-injection-after-closing"},{"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"},{"question":"Are environmental questionnaires always required for real estate involved in an SBA 7(a) acquisition?","url":"https://dealroom.so/sba-7a/questions/are-environmental-questionnaires-always-required-for-real-estate-involved-in-an-sba-7-a-ac"},{"question":"What specific environmental review is required for commercial real estate included in an SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-specific-environmental-review-is-required-for-commercial-real-estate-included-in-an-s"}]},"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 — Equity in real estate","url":"https://dealroom.so/glossary/equity-in-real-estate","source_type":"DealRoom Data"}}