{"ok":true,"canonical_url":"https://dealroom.so/glossary/heloc","api_url":"https://dealroom.so/api/public/glossary/heloc","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":"heloc","term":"HELOC","aka":"Home Equity Line of Credit","group":"Your money in the deal","definition":"A revolving credit line secured by your home's equity. Buyers sometimes use HELOC funds for their equity injection or working capital, leveraging personal assets for the deal.","what_it_means":"While a HELOC can provide liquidity, using it as your equity injection might be complicated. The SBA generally prefers unencumbered funds. If you use a HELOC, the lender will scrutinize the source to ensure it's not disguised debt requiring a standby agreement. Make sure your personal financial statement reflects this accurately.","url":"https://dealroom.so/glossary/heloc","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"}],"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":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-as-my-equity-injection-for-a-bus"},{"question":"Can funds from a home equity line of credit (HELOC) be used for my SBA 7(a) acquisition down payment?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-for-my-sba-7-a-acquisition-down-"},{"question":"What documentation is required to verify the source of equity injection funds from a recent personal loan (e.g., HELOC)?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-the-source-of-equity-injection-funds-from-a-recen"},{"question":"Can funds from a personal home equity line of credit (HELOC) be used for my SBA 7(a) down payment?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-personal-home-equity-line-of-credit-heloc-be-used-for-my-sba-7-a-down-pay"},{"question":"Can I inject funds from a home equity line of credit (HELOC) as my cash down payment for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/can-i-inject-funds-from-a-home-equity-line-of-credit-heloc-as-my-cash-down-payment-for-an-"}]},"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 — HELOC","url":"https://dealroom.so/glossary/heloc","source_type":"DealRoom Data"}}