{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-","api_url":"https://dealroom.so/api/public/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-","question":"Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"You can contribute certain non-cash assets such as business-related equipment you already own (at its appraised value), or a seller note on full standby, to fulfill the 10% equity injection.","rule":"SBA rules allow for non-cash assets to count toward the equity injection if properly valued and documented. Contributed equipment must be appraised by an independent third party. Seller notes must be on full standby (no payments for the life of the SBA loan or at least two years) and fully subordinated to the SBA loan.","example":"For an $800,000 acquisition requiring $80,000 equity, you could contribute $40,000 in cash and a piece of equipment you own (e.g., a commercial vehicle) with an appraised value of $40,000. Or, $40,000 cash and a $40,000 seller note on full standby.","what_lenders_check":"Lenders verify the valuation and ownership of contributed non-cash assets through independent appraisals and clear title. For seller notes, the standby agreement's enforceability and compliance with subordination rules are paramount.","required_facts":["Contributed equipment","Appraised value","Seller note","Full standby","Unencumbered"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"Can renovation costs for an acquired business premises count towards my required 10% equity injection?","url":"https://dealroom.so/sba-7a/questions/can-renovation-costs-for-an-acquired-business-premises-count-towards-my-required-10-equity"},{"question":"Can the fair market value of equipment I already own and contribute to the acquired business count towards my equity?","url":"https://dealroom.so/sba-7a/questions/can-the-fair-market-value-of-equipment-i-already-own-and-contribute-to-the-acquired-busine"},{"question":"Can sweat equity or future services I provide to the business count towards the required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-sweat-equity-or-future-services-i-provide-to-the-business-count-towards-the-required-e"},{"question":"Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/are-pre-closing-legal-and-accounting-fees-eligible-to-be-counted-towards-my-equity-injecti"},{"question":"Can a substantial pre-paid rent deposit on a commercial lease count towards the equity injection for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-substantial-pre-paid-rent-deposit-on-a-commercial-lease-count-towards-the-equity-inj"},{"question":"If I contribute existing equipment valued at $50,000 to the acquired business, can it count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/if-i-contribute-existing-equipment-valued-at-50-000-to-the-acquired-business-can-it-count-"}],"related_terms":[{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Non-Cash Assets","url":"https://dealroom.so/glossary/non-cash-assets"},{"term":"Non-cash equity","url":"https://dealroom.so/glossary/non-cash-equity"},{"term":"Cash injection","url":"https://dealroom.so/glossary/cash-injection"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Foreign-Sourced Equity Injection","url":"https://dealroom.so/glossary/foreign-sourced-equity-injection"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}