{"ok":true,"canonical_url":"https://dealroom.so/glossary/permanent-capital","api_url":"https://dealroom.so/api/public/glossary/permanent-capital","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":"permanent-capital","term":"Permanent capital","group":"Your money in the deal","definition":"This refers to capital that is not expected to be repaid, typically your equity injection (down payment) in the business. It's critical because the SBA requires a minimum amount of your own permanent capital in the deal.","what_it_means":"The SBA mandates a minimum equity injection, usually 10-15% of the total project cost, which must be \"seasoned funds\" or from \"unencumbered\" sources. This shows your commitment and reduces the lender's risk, making your deal more financeable.","url":"https://dealroom.so/glossary/permanent-capital","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":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"},{"slug":"down-payment","term":"Down payment","url":"https://dealroom.so/glossary/down-payment"}],"related_questions":[{"question":"Can a permanent resident apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-a-permanent-resident-apply-for-an-sba-7-a-loan"},{"question":"Should a business choose term or permanent life insurance for key person protection?","url":"https://dealroom.so/sba-7a/questions/should-a-business-choose-term-or-permanent-life-insurance-for-key-person-protection"},{"question":"Can a Qualified Alien without permanent residency obtain an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-qualified-alien-without-permanent-residency-obtain-an-sba-7-a-loan"},{"question":"When is term life insurance more suitable than permanent life insurance for business protection?","url":"https://dealroom.so/sba-7a/questions/when-is-term-life-insurance-more-suitable-than-permanent-life-insurance-for-business-prote"},{"question":"How does a lender verify the lawful permanent resident status of a non-citizen applicant?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-lawful-permanent-resident-status-of-a-non-citizen-applicant"},{"question":"What specific documentation is required to verify a non-citizen owner's lawful permanent resident status?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-a-non-citizen-owner-s-lawful-permanent-r"}]},"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 — Permanent capital","url":"https://dealroom.so/glossary/permanent-capital","source_type":"DealRoom Data"}}