{"ok":true,"canonical_url":"https://dealroom.so/glossary/home-equity-loan","api_url":"https://dealroom.so/api/public/glossary/home-equity-loan","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":"home-equity-loan","term":"Home Equity Loan","group":"Your money in the deal","definition":"This is a loan secured by the equity in your home. It's a common way for buyers to fund their equity injection for an SBA loan.","what_it_means":"Using a home equity loan for your equity injection is generally acceptable to the SBA as it represents \"seasoned funds\" if taken out sufficiently in advance, or \"out of pocket\" if taken near closing. The loan is secured by your personal residence, not the acquired business. Ensure you understand the risks of leveraging your home.","url":"https://dealroom.so/glossary/home-equity-loan","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":"home-equity-line-of-credit","term":"Home equity line of credit","url":"https://dealroom.so/glossary/home-equity-line-of-credit"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"personal-assets","term":"Personal Assets","url":"https://dealroom.so/glossary/personal-assets"},{"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":"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":"How does using funds from a home equity line of credit affect my down payment?","url":"https://dealroom.so/sba-7a/questions/how-does-using-funds-from-a-home-equity-line-of-credit-affect-my-down-payment"},{"question":"Can funds from a home equity line of credit be used for the down payment?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-the-down-payment"},{"question":"Can a cash-out refinance of my personal home count as equity injection for an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-cash-out-refinance-of-my-personal-home-count-as-equity-injection-for-an-acquisition"}]},"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 — Home Equity Loan","url":"https://dealroom.so/glossary/home-equity-loan","source_type":"DealRoom Data"}}