{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/besides-cash-what-other-forms-of-investment-can-count-as-my-down-payment-equity-injection-","api_url":"https://dealroom.so/api/public/questions/besides-cash-what-other-forms-of-investment-can-count-as-my-down-payment-equity-injection-","question":"Besides cash, what other forms of investment can count as my down payment (equity injection) for an SBA 7(a) loan?","topic":"Down payment & equity injection","audience":"new","bot_mode":"buyer","short_answer":"Beyond cash, acceptable forms of equity injection include readily marketable assets, certain standby seller notes, and sometimes the appraised value of owned real estate or equipment that will be used in the business.","rule":"The equity injection can come from various sources as long as it demonstrates a true investment by the borrower. This includes cash, unencumbered assets valued at their net equity (like real estate or equipment introduced to the business), and a seller's note provided it is on full standby for the life of the loan and meets specific SBA requirements.","example":"A buyer is injecting 15% equity for a $1,000,000 acquisition. They contribute $50,000 in cash, and the seller agrees to a $100,000 note that will be on full standby (no payments) for the life of the SBA loan, totaling a 15% equity injection.","what_lenders_check":"Lenders meticulously verify the value and unencumbered status of any non-cash assets. For seller notes, they ensure the full standby requirement is met and documented correctly to count towards the equity injection.","required_facts":["Cash","Seller note (full standby)","Unencumbered assets","Real estate equity","Equipment equity","Buyer investment"],"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 I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-loans/basics/can-i-use-retirement-funds-from-a-401-k-as-equity-injection-for-a-750-000-business-purchas"},{"question":"Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?","url":"https://dealroom.so/sba-loans/basics/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-as-my-equity-injection-for-a-bus"},{"question":"Is it possible to use a second mortgage on my personal residence as an equity injection for a $1.5 million business acquisition?","url":"https://dealroom.so/sba-loans/basics/is-it-possible-to-use-a-second-mortgage-on-my-personal-residence-as-an-equity-injection-fo"},{"question":"How much cash must I personally inject for an SBA 7(a) business acquisition?","url":"https://dealroom.so/sba-loans/basics/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition"},{"question":"What are the acceptable sources for my cash equity injection beyond personal savings?","url":"https://dealroom.so/sba-loans/basics/what-are-the-acceptable-sources-for-my-cash-equity-injection-beyond-personal-savings"},{"question":"What is the SBA's minimum required equity injection percentage for a business acquisition?","url":"https://dealroom.so/sba-loans/basics/what-is-the-sba-s-minimum-required-equity-injection-percentage-for-a-business-acquisition"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Equity Investment","url":"https://dealroom.so/glossary/equity-investment"},{"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-loans/basics/besides-cash-what-other-forms-of-investment-can-count-as-my-down-payment-equity-injection-","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."]}