{"ok":true,"canonical_url":"https://dealroom.so/glossary/investment-liquidation","api_url":"https://dealroom.so/api/public/glossary/investment-liquidation","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":"investment-liquidation","term":"Investment liquidation","group":"Your money in the deal","definition":"This refers to selling personal investments like stocks or mutual funds to fund your equity injection. It's a common way buyers gather the necessary down payment for an SBA loan.","what_it_means":"When using investment liquidation for your equity injection, you'll need to provide brokerage statements showing the sale and the funds transferred to your bank account. Ensure the funds are \"seasoned\" – meaning they've been in your account long enough not to look like a new loan – or clearly document the liquidation process.","url":"https://dealroom.so/glossary/investment-liquidation","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":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"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"},{"question":"What documentation verifies funds for equity injection transferred from a personal investment account?","url":"https://dealroom.so/for-lenders/questions/what-documentation-verifies-funds-for-equity-injection-transferred-from-a-personal-investm"},{"question":"What documentation is required to verify equity injection funds from a personal investment account?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-required-to-verify-equity-injection-funds-from-a-personal-investment"},{"question":"Can I get an SBA 7(a) loan for a real estate investment business?","url":"https://dealroom.so/sba-loans/basics/can-i-get-an-sba-7-a-loan-for-a-real-estate-investment-business"},{"question":"Can funds from a personal investment account, like a brokerage account, count towards equity injection?","url":"https://dealroom.so/sba-loans/basics/can-funds-from-a-personal-investment-account-like-a-brokerage-account-count-towards-equity"},{"question":"What is the required timeframe for a lender to submit a liquidation plan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-required-timeframe-for-a-lender-to-submit-a-liquidation-plan"}]},"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 — Investment liquidation","url":"https://dealroom.so/glossary/investment-liquidation","source_type":"DealRoom Data"}}