{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-liquidity","api_url":"https://dealroom.so/api/public/glossary/personal-liquidity","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":"personal-liquidity","term":"Personal liquidity","group":"Your money in the deal","definition":"The amount of cash and easily convertible assets you have readily available. Lenders assess this to ensure you can cover your equity injection and post-closing working capital.","what_it_means":"Lenders require proof of sufficient personal liquidity to cover the required equity injection and often a cushion for post-closing working capital. This typically comes from bank accounts, brokerage accounts, or funds readily accessible from retirement accounts (like through ROBS). Unencumbered funds are essential.","url":"https://dealroom.so/glossary/personal-liquidity","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":"sba-form-1919","title":"SBA Form 1919 — Borrower Information Form","official_url":"https://www.sba.gov/document/sba-form-1919-borrower-information-form","official_label":"View on SBA.gov","authority_tier":4,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sba-form-1919"}],"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":"proof-of-funds","term":"Proof of funds","url":"https://dealroom.so/glossary/proof-of-funds"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"}],"related_questions":[{"question":"How does a lender evaluate my personal liquidity for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-a-lender-evaluate-my-personal-liquidity-for-an-sba-7-a-loan"},{"question":"What if my personal liquidity is low, but the business's financials are very strong?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-liquidity-is-low-but-the-business-s-financials-are-very-strong"},{"question":"What if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-financial-statement-shows-low-liquidity-but-i-have-a-strong-credit-sco"},{"question":"What happens if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-my-personal-financial-statement-shows-low-liquidity-but-i-have-a-strong-cr"},{"question":"What if my personal liquidity is low, but I have a substantial amount in my 401k that I can borrow against?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-liquidity-is-low-but-i-have-a-substantial-amount-in-my-401k-that-i-can"},{"question":"How does a lender verify the liquidity of an equity injection from a borrower's investment account?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-liquidity-of-an-equity-injection-from-a-borrower-s-investment"}]},"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 liquidity","url":"https://dealroom.so/glossary/personal-liquidity","source_type":"DealRoom Data"}}