{"ok":true,"canonical_url":"https://dealroom.so/glossary/equity-injection","api_url":"https://dealroom.so/api/public/glossary/equity-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":"equity-injection","term":"Equity injection","group":"Your money in the deal","definition":"Your down payment, in SBA language. Minimum 10% of total project costs for a full business purchase.","what_it_means":"Equity injection is SBA-speak for what you bring to the table. The SBA requires at least 10% of total project costs — not just the purchase price — to come from you, the seller (via a standby note), or both. The money must be sourced and seasoned: two months of bank statements showing where it came from. If you're short, a seller note on full standby can fill the gap — but only if it meets strict conditions laid out in SOP 50 10.","url":"https://dealroom.so/glossary/equity-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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"robs","term":"ROBS","url":"https://dealroom.so/glossary/robs"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"}],"related_questions":[{"question":"Can funds from a home equity line of credit be used for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-my-equity-injection"},{"question":"Can I use funds from a home equity line of credit for my 10% equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-home-equity-line-of-credit-for-my-10-equity-injection"},{"question":"How is 'sweat equity' or future services treated for an SBA 7(a) loan equity injection?","url":"https://dealroom.so/sba-7a/questions/how-is-sweat-equity-or-future-services-treated-for-an-sba-7-a-loan-equity-injection"},{"question":"Can a business's retained earnings count as equity injection?","url":"https://dealroom.so/sba-loans/basics/can-a-business-s-retained-earnings-count-as-equity-injection"},{"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":"Are proceeds from personal investment sales eligible for equity injection?","url":"https://dealroom.so/sba-7a/questions/are-proceeds-from-personal-investment-sales-eligible-for-equity-injection"}],"related_tool":{"label":"SBA down payment guide","url":"https://dealroom.so/sba-7a/down-payment"}},"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 injection","url":"https://dealroom.so/glossary/equity-injection","source_type":"DealRoom Data"}}