{"ok":true,"canonical_url":"https://dealroom.so/glossary/liquid-contribution","api_url":"https://dealroom.so/api/public/glossary/liquid-contribution","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-contribution","term":"Liquid contribution","group":"Your money in the deal","definition":"This is the portion of your equity injection that must be in cash or easily convertible assets, readily available and unencumbered. As a buyer, you care because it's a non-negotiable part of your required down payment.","what_it_means":"The SBA typically requires a minimum of 5% of the total project costs to come from the buyer as a liquid contribution. These funds must be seasoned (held for at least 90 days) in a bank or brokerage account, or the source of funds must be clearly documented if more recent. This ensures you have real skin in the game.","url":"https://dealroom.so/glossary/liquid-contribution","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":"minimum-cash-injection","term":"Minimum cash injection","url":"https://dealroom.so/glossary/minimum-cash-injection"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"}],"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":"Can the seller's contribution of working capital count towards my minimum equity injection?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-s-contribution-of-working-capital-count-towards-my-minimum-equity-injection"},{"question":"Can an institutional investor's cash contribution count towards my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-an-institutional-investor-s-cash-contribution-count-towards-my-sba-7-a-equity-injectio"},{"question":"What is the typical down payment or equity contribution required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-down-payment-or-equity-contribution-required-for-an-sba-7-a-loan"},{"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"}]},"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 contribution","url":"https://dealroom.so/glossary/liquid-contribution","source_type":"DealRoom Data"}}