{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-line-of-credit","api_url":"https://dealroom.so/api/public/glossary/personal-line-of-credit","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"personal-line-of-credit","term":"Personal line of credit","group":"Your money in the deal","definition":"A personal line of credit is a revolving credit facility you can draw from as needed. While it can be a source of personal funds, lenders scrutinize its use for equity injection.","what_it_means":"Lenders view a personal line of credit as debt, not equity. If you use it for your down payment, the lender will likely require it to be fully paid off at closing, or it will count against your personal liquidity. It's not considered \"seasoned funds\" and can complicate your equity injection.","url":"https://dealroom.so/glossary/personal-line-of-credit","official_sources":[],"related":[{"slug":"home-equity-line-of-credit","term":"Home equity line of credit","url":"https://dealroom.so/glossary/home-equity-line-of-credit"},{"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":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"Can I use a secured personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-secured-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can funds from a personal line of credit secured by non-personal real estate be equity injection?","url":"https://dealroom.so/for-lenders/questions/can-funds-from-a-personal-line-of-credit-secured-by-non-personal-real-estate-be-equity-inj"},{"question":"Can I use funds from a personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can funds from an unsecured personal line of credit be considered part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-an-unsecured-personal-line-of-credit-be-considered-part-of-my-equity-inject"},{"question":"Can I use funds from a personal line of credit for my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-line-of-credit-for-my-sba-7-a-equity-injection"},{"question":"How does a lender verify equity injection from a personal line of credit that is not fully drawn?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-from-a-personal-line-of-credit-that-is-not-fully"}]},"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 — Personal line of credit","url":"https://dealroom.so/glossary/personal-line-of-credit","source_type":"DealRoom Data"}}