{"ok":true,"canonical_url":"https://dealroom.so/glossary/equity-interest","api_url":"https://dealroom.so/api/public/glossary/equity-interest","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-interest","term":"Equity Interest","group":"Your money in the deal","definition":"This represents your ownership stake in a business. For an SBA loan, you must show a sufficient equity interest (down payment) in the deal.","what_it_means":"The SBA generally requires a minimum equity injection from the buyer, typically 10-20% of the total project costs, to demonstrate your commitment. This equity can come from cash, seasoned funds, or sometimes a seller note on full standby. Lenders verify the source of these funds.","url":"https://dealroom.so/glossary/equity-interest","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":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"question":"Can a seller note with deferred payments but no interest count as full standby for equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-seller-note-with-deferred-payments-but-no-interest-count-as-full-standby-for-equity-"},{"question":"Can I use a seller note that pays interest only for the first two years towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-seller-note-that-pays-interest-only-for-the-first-two-years-towards-my-equity-"},{"question":"What happens to the interest rate on an SBA 7(a) loan if general market interest rates go down significantly?","url":"https://dealroom.so/sba-loans/basics/what-happens-to-the-interest-rate-on-an-sba-7-a-loan-if-general-market-interest-rates-go-d"},{"question":"Can a full standby seller note be interest-bearing if interest is deferred until after the SBA loan is repaid?","url":"https://dealroom.so/for-lenders/questions/can-a-full-standby-seller-note-be-interest-bearing-if-interest-is-deferred-until-after-the"},{"question":"What is the difference between a fixed interest rate and a variable interest rate on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-a-fixed-interest-rate-and-a-variable-interest-rate-on-an-sb"},{"question":"How are SBA 7(a) loan interest rates determined?","url":"https://dealroom.so/sba-loans/basics/how-are-sba-7-a-loan-interest-rates-determined"}]},"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 Interest","url":"https://dealroom.so/glossary/equity-interest","source_type":"DealRoom Data"}}