{"ok":true,"canonical_url":"https://dealroom.so/glossary/working-capital-injection","api_url":"https://dealroom.so/api/public/glossary/working-capital-injection","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":"working-capital-injection","term":"Working Capital Injection","group":"Your money in the deal","definition":"This is part of your equity injection specifically designated to fund the business's immediate operational needs after acquisition, like inventory or payroll. It's often required by the SBA.","what_it_means":"Beyond the down payment for the purchase price, the SBA often requires a portion of your equity injection to be set aside for working capital. This ensures the business has enough liquidity to operate smoothly post-acquisition, covering initial expenses or unforeseen needs. This isn't optional; it's a condition of the loan.","url":"https://dealroom.so/glossary/working-capital-injection","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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"}],"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 a commitment to inject additional working capital after closing count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-commitment-to-inject-additional-working-capital-after-closing-count-towards-my-equit"},{"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"}]},"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 — Working Capital Injection","url":"https://dealroom.so/glossary/working-capital-injection","source_type":"DealRoom Data"}}