{"ok":true,"canonical_url":"https://dealroom.so/glossary/restricted-stock","api_url":"https://dealroom.so/api/public/glossary/restricted-stock","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":"restricted-stock","term":"Restricted stock","group":"Your money in the deal","definition":"This is company stock that you can't sell or transfer for a specific period or until certain conditions are met. Lenders won't count restricted stock towards your required cash injection.","what_it_means":"The SBA requires your equity injection to be unencumbered and readily available. Restricted stock doesn't meet this test because you can't freely convert it to cash. You'll need to find other liquid assets for your down payment.","url":"https://dealroom.so/glossary/restricted-stock","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"}],"related":[{"slug":"private-equity-holding","term":"Private equity holding","url":"https://dealroom.so/glossary/private-equity-holding"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"},{"slug":"marketable-securities","term":"Marketable securities","url":"https://dealroom.so/glossary/marketable-securities"}],"related_questions":[{"question":"Will acquiring a business in a restricted industry (e.g., gambling, passive investing) kill approval?","url":"https://dealroom.so/sba-7a/questions/will-acquiring-a-business-in-a-restricted-industry-e-g-gambling-passive-investing-kill-app"},{"question":"What is the difference between an asset and stock purchase in a buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-difference-between-an-asset-and-stock-purchase-in-a-buyout"},{"question":"What if the value of my stock portfolio (for equity injection) drops before closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-value-of-my-stock-portfolio-for-equity-injection-drops-before-closing"},{"question":"Can an SBA 7(a) loan be used to buy stock or passive investments?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-buy-stock-or-passive-investments"},{"question":"What documentation is required to verify equity injection funds sourced from a personal stock sale?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-funds-sourced-from-a-personal-st"},{"question":"Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?","url":"https://dealroom.so/for-lenders/questions/does-an-unfunded-stock-option-agreement-trigger-affiliation-for-sba-7-a-size-standard-calc"}]},"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 — Restricted stock","url":"https://dealroom.so/glossary/restricted-stock","source_type":"DealRoom Data"}}