{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-equity","api_url":"https://dealroom.so/api/public/glossary/owner-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":"owner-equity","term":"Owner Equity","group":"Your money in the deal","definition":"This is the cash you, as the buyer, put into the deal. It's your stake in the business and a key requirement for any SBA loan.","what_it_means":"For an acquisition, the SBA typically requires a minimum of 10% owner equity injection, though some lenders or deals may require more. This injection must come from unencumbered, seasoned funds. Your owner equity demonstrates your commitment and reduces the lender's risk.","url":"https://dealroom.so/glossary/owner-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":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"}],"related_questions":[{"question":"How is prior owner debt converted to equity treated for injection purposes?","url":"https://dealroom.so/for-lenders/questions/how-is-prior-owner-debt-converted-to-equity-treated-for-injection-purposes"},{"question":"Can investor funds from non-owner individuals be used for the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-investor-funds-from-non-owner-individuals-be-used-for-the-equity-injection"},{"question":"How does the SBA view prior owner debt converted to equity for injection purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-view-prior-owner-debt-converted-to-equity-for-injection-purposes"},{"question":"What documentation is needed if an institutional investor provides equity but is not an owner?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-needed-if-an-institutional-investor-provides-equity-but-is-not-an-ow"},{"question":"What documentation is required if a business owner contributes pre-existing business equipment as equity?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-if-a-business-owner-contributes-pre-existing-business-equip"},{"question":"How does the SBA verify a non-owner investor's funds used for equity injection?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-a-non-owner-investor-s-funds-used-for-equity-injection"}]},"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 — Owner Equity","url":"https://dealroom.so/glossary/owner-equity","source_type":"DealRoom Data"}}