{"ok":true,"canonical_url":"https://dealroom.so/glossary/non-cash-equity","api_url":"https://dealroom.so/api/public/glossary/non-cash-equity","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-equity","term":"Non-cash equity","group":"Your money in the deal","definition":"This is a portion of your down payment that isn't actual cash, such as a seller note on full standby or a buyer's existing business assets contributed to the new entity.","what_it_means":"The SBA allows a portion of your required equity injection to be non-cash, often in the form of a seller note on full standby. This means the seller gets paid *after* the SBA loan is fully repaid. Clearly define any non-cash equity with your lender to ensure it meets SBA rules for eligibility.","url":"https://dealroom.so/glossary/non-cash-equity","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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"full-standby-agreement","term":"Full Standby Agreement","url":"https://dealroom.so/glossary/full-standby-agreement"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"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":"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":"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 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"},{"question":"What type of independent valuation is required for non-cash assets to count as equity injection?","url":"https://dealroom.so/sba-7a/questions/what-type-of-independent-valuation-is-required-for-non-cash-assets-to-count-as-equity-inje"},{"question":"Can I use appraised business equipment or other non-cash assets as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-appraised-business-equipment-or-other-non-cash-assets-as-part-of-my-equity-injec"}]},"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 equity","url":"https://dealroom.so/glossary/non-cash-equity","source_type":"DealRoom Data"}}