{"ok":true,"canonical_url":"https://dealroom.so/glossary/equity-injection-verification","api_url":"https://dealroom.so/api/public/glossary/equity-injection-verification","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-verification","term":"Equity injection verification","group":"Your money in the deal","definition":"This is the process where your lender confirms you have the required down payment (equity injection) and that these funds are eligible for the SBA loan. It ensures your commitment and financial capacity for the deal.","what_it_means":"For an SBA 7(a) loan, you must show proof of your equity injection, typically 10-25% of the total project cost. Lenders verify the source of these funds, looking for \"seasoned\" funds from your bank or brokerage accounts. Avoid \"round-tripped\" funds or unverified gifts, as these will not count towards your injection.","url":"https://dealroom.so/glossary/equity-injection-verification","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":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"question":"If I receive a gift from a foreign relative for my down payment, what specific verification is needed?","url":"https://dealroom.so/sba-7a/questions/if-i-receive-a-gift-from-a-foreign-relative-for-my-down-payment-what-specific-verification"},{"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"}]},"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 verification","url":"https://dealroom.so/glossary/equity-injection-verification","source_type":"DealRoom Data"}}