{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-s-capital-contribution","api_url":"https://dealroom.so/api/public/glossary/owner-s-capital-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":"owner-s-capital-contribution","term":"Owner's Capital Contribution","group":"Your money in the deal","definition":"This is the cash or eligible assets you, as the buyer, put into the deal. It's your equity injection, demonstrating your commitment and reducing the overall loan amount.","what_it_means":"The SBA requires a minimum owner's capital contribution, typically 10-20% of the total project cost. This can be cash, seller notes on full standby, or eligible assets. Document the source of these funds thoroughly to prove they are \"seasoned\" and \"unencumbered.\"","url":"https://dealroom.so/glossary/owner-s-capital-contribution","official_sources":[{"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"},{"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":"irrevocable-contribution","term":"Irrevocable contribution","url":"https://dealroom.so/glossary/irrevocable-contribution"},{"slug":"tangible-capital-contribution","term":"Tangible capital contribution","url":"https://dealroom.so/glossary/tangible-capital-contribution"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"}],"related_questions":[{"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":"Can a seller note be used to finance the entire seller's equity contribution to the buyer's business?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-used-to-finance-the-entire-seller-s-equity-contribution-to-the-buyer-"},{"question":"What is the SBA's requirement for a buyer's post-closing working capital position?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-s-requirement-for-a-buyer-s-post-closing-working-capital-position"},{"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":"How does a lender confirm an owner's U.S. citizenship if they were born in a U.S. territory or abroad to U.S. parents?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-confirm-an-owner-s-u-s-citizenship-if-they-were-born-in-a-u-s-territory-"}]},"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's Capital Contribution","url":"https://dealroom.so/glossary/owner-s-capital-contribution","source_type":"DealRoom Data"}}