{"ok":true,"canonical_url":"https://dealroom.so/glossary/non-cash-contribution","api_url":"https://dealroom.so/api/public/glossary/non-cash-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":"non-cash-contribution","term":"Non-Cash Contribution","group":"Your money in the deal","definition":"This is an asset, like equipment or real estate, that you contribute to the business instead of cash, counting towards your required equity injection. The SBA allows it under strict conditions.","what_it_means":"If you're contributing non-cash assets, they must be valued at fair market value by an independent appraiser. The asset needs to be unencumbered and essential for the business. This can reduce your out-of-pocket cash but adds complexity to the appraisal and closing process.","url":"https://dealroom.so/glossary/non-cash-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":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"}],"related_questions":[{"question":"What forms of non-cash contributions can count towards the equity injection?","url":"https://dealroom.so/sba-loans/basics/what-forms-of-non-cash-contributions-can-count-towards-the-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":"Besides cash and seller notes, what other buyer contributions qualify for equity?","url":"https://dealroom.so/sba-7a/questions/besides-cash-and-seller-notes-what-other-buyer-contributions-qualify-for-equity"},{"question":"Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?","url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-"},{"question":"What types of non-cash assets qualify for an SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/what-types-of-non-cash-assets-qualify-for-an-sba-7-a-equity-injection"},{"question":"What non-cash forms of equity injection are acceptable for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-non-cash-forms-of-equity-injection-are-acceptable-for-an-sba-7-a-loan"}]},"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 — Non-Cash Contribution","url":"https://dealroom.so/glossary/non-cash-contribution","source_type":"DealRoom Data"}}