{"ok":true,"canonical_url":"https://dealroom.so/glossary/tangible-capital-contribution","api_url":"https://dealroom.so/api/public/glossary/tangible-capital-contribution","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":"tangible-capital-contribution","term":"Tangible capital contribution","group":"Your money in the deal","definition":"This refers to your equity injection that consists of actual cash or hard assets with verifiable value, not goodwill or intangible assets. It's the most straightforward form of equity.","what_it_means":"The SBA prefers tangible capital contributions as they represent real value. While goodwill can be part of the purchase price, your equity injection primarily needs to be cash or assets like real estate or equipment. Lenders will assess the fair market value of any non-cash contributions.","url":"https://dealroom.so/glossary/tangible-capital-contribution","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":"owner-s-capital-contribution","term":"Owner's Capital Contribution","url":"https://dealroom.so/glossary/owner-s-capital-contribution"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"irrevocable-contribution","term":"Irrevocable contribution","url":"https://dealroom.so/glossary/irrevocable-contribution"},{"slug":"goodwill","term":"Goodwill","url":"https://dealroom.so/glossary/goodwill"}],"related_questions":[{"question":"Can the seller's contribution of working capital count towards my minimum equity injection?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-s-contribution-of-working-capital-count-towards-my-minimum-equity-injection"},{"question":"Can an institutional investor's cash contribution count towards my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-an-institutional-investor-s-cash-contribution-count-towards-my-sba-7-a-equity-injectio"},{"question":"What is the typical down payment or equity contribution required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-down-payment-or-equity-contribution-required-for-an-sba-7-a-loan"},{"question":"What if the business I'm buying has limited tangible assets for collateral?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-limited-tangible-assets-for-collateral"},{"question":"What are the typical collateral requirements if the business has very few tangible assets?","url":"https://dealroom.so/sba-7a/questions/what-are-the-typical-collateral-requirements-if-the-business-has-very-few-tangible-assets"},{"question":"Can a seller note be used to finance the entire seller's equity contribution to the buyer's business?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-used-to-finance-the-entire-seller-s-equity-contribution-to-the-buyer-"}]},"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 — Tangible capital contribution","url":"https://dealroom.so/glossary/tangible-capital-contribution","source_type":"DealRoom Data"}}