{"ok":true,"canonical_url":"https://dealroom.so/glossary/risk-capital","api_url":"https://dealroom.so/api/public/glossary/risk-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":"risk-capital","term":"Risk Capital","group":"Your money in the deal","definition":"The portion of a business's funding that is at the highest risk, typically the owner's personal investment (equity injection). It's money you stand to lose if the business fails.","what_it_means":"For an SBA 7(a) loan, your equity injection serves as your risk capital, demonstrating your commitment to the business. The SBA requires a minimum equity injection, typically 10-15% of total project costs, to ensure you have \"skin in the game.\" Lenders will scrutinize the source and seasoning of these funds.","url":"https://dealroom.so/glossary/risk-capital","official_sources":[],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"seasoning-of-funds","term":"Seasoning of Funds","url":"https://dealroom.so/glossary/seasoning-of-funds"},{"slug":"equity","term":"Equity","url":"https://dealroom.so/glossary/equity"}],"related_questions":[{"question":"Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program loan?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-limits-on-the-amount-of-working-capital-that-can-be-included-in-a-7-a-w"},{"question":"What kind of everyday expenses can working capital cover?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-everyday-expenses-can-working-capital-cover"},{"question":"Can an SBA 7(a) loan finance working capital?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-working-capital"},{"question":"What is the typical repayment term for working capital only?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-repayment-term-for-working-capital-only"},{"question":"Can working capital be used for unexpected business expenses after closing?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-be-used-for-unexpected-business-expenses-after-closing"},{"question":"What does 'working capital' mean for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-does-working-capital-mean-for-an-sba-7-a-loan"}]},"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 — Risk Capital","url":"https://dealroom.so/glossary/risk-capital","source_type":"DealRoom Data"}}