{"ok":true,"canonical_url":"https://dealroom.so/glossary/liquid-assets","api_url":"https://dealroom.so/api/public/glossary/liquid-assets","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":"liquid-assets","term":"Liquid assets","group":"Reading the business","definition":"These are assets that can be quickly converted into cash with minimal loss in value, like cash in bank accounts. They indicate a business's ability to cover short-term obligations.","what_it_means":"Lenders look at a business's liquid assets (and your personal liquid assets) to assess working capital and the ability to absorb unexpected costs. While the SBA doesn't have a specific requirement for business liquid assets, sufficient working capital is usually required as part of the loan. For your equity injection, you'll need to prove your own liquid assets are seasoned and available.","url":"https://dealroom.so/glossary/liquid-assets","official_sources":[],"related":[{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"personal-liquidity","term":"Personal liquidity","url":"https://dealroom.so/glossary/personal-liquidity"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"What if my personal financial statement shows low liquid assets?","url":"https://dealroom.so/sba-loans/basics/what-if-my-personal-financial-statement-shows-low-liquid-assets"},{"question":"What exactly constitutes \"unencumbered liquid assets\" as a source for the required equity injection?","url":"https://dealroom.so/sba-7a/questions/what-exactly-constitutes-unencumbered-liquid-assets-as-a-source-for-the-required-equity-in"},{"question":"What percentage of the equity injection must be unencumbered liquid assets for a $1,000,000 business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-percentage-of-the-equity-injection-must-be-unencumbered-liquid-assets-for-a-1-000-000"},{"question":"What if my personal credit score is strong (e.g., 720), but my personal financial statement shows limited liquid assets?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-score-is-strong-e-g-720-but-my-personal-financial-statement-sho"},{"question":"Do I need personal assets to secure the loan if the business assets are sufficient?","url":"https://dealroom.so/sba-loans/basics/do-i-need-personal-assets-to-secure-the-loan-if-the-business-assets-are-sufficient"},{"question":"If the business's assets are insufficient, will I need to pledge personal assets as collateral?","url":"https://dealroom.so/sba-7a/questions/if-the-business-s-assets-are-insufficient-will-i-need-to-pledge-personal-assets-as-collate"}]},"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 — Liquid assets","url":"https://dealroom.so/glossary/liquid-assets","source_type":"DealRoom Data"}}