{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-a-secured-personal-loan-from-a-non-sba-bank-count-as-my-equity-injection","api_url":"https://dealroom.so/api/public/questions/can-a-secured-personal-loan-from-a-non-sba-bank-count-as-my-equity-injection","question":"Can a secured personal loan from a non-SBA bank count as my equity injection?","topic":"Down Payment & Equity Injection","audience":"borrower","bot_mode":"buyer","short_answer":"No, a personal loan from a non-SBA bank, even if secured by personal assets, generally cannot count as an equity injection for an SBA 7(a) loan.","rule":"Equity injection must be from the borrower's unencumbered personal resources or from fully subordinated, unsecured debt. Funds that are themselves borrowed from a third party (unless it's a fully subordinated standby loan from an investor) are not considered true equity at risk and are ineligible.","example":"If you take out a personal loan for $50,000 from your local bank, secured by your car, you cannot use these funds as your equity injection for a $500,000 SBA loan. The funds must originate from your own verifiable, unencumbered resources.","what_lenders_check":"Lenders must verify the source of all equity injection funds. They are concerned with ensuring that the equity is truly 'at risk' and not another form of debt that could compete with the SBA loan for repayment or collateral.","required_facts":["Unencumbered funds","Not borrowed from third party","Equity at risk","Verifiable source"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"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"}],"related_questions":[{"question":"How much of my own money do I need to invest in the business?","url":"https://dealroom.so/sba-7a/questions/how-much-of-my-own-money-do-i-need-to-invest-in-the-business"},{"question":"What is usually the minimum cash down payment required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-usually-the-minimum-cash-down-payment-required-for-an-sba-7-a-loan"},{"question":"Can the down payment for an SBA 7(a) loan come from a gift from family or friends?","url":"https://dealroom.so/sba-7a/questions/can-the-down-payment-for-an-sba-7-a-loan-come-from-a-gift-from-family-or-friends"},{"question":"What types of assets or funds count as 'equity injection' for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-types-of-assets-or-funds-count-as-equity-injection-for-an-sba-7-a-loan"},{"question":"Do I need to put a cash down payment for an SBA 7(a) loan to buy a business?","url":"https://dealroom.so/sba-7a/questions/do-i-need-to-put-a-cash-down-payment-for-an-sba-7-a-loan-to-buy-a-business"},{"question":"Can I use existing business assets I already own as part of my down payment for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-i-use-existing-business-assets-i-already-own-as-part-of-my-down-payment-for-an-sba-7-a"}],"related_terms":[{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-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/can-a-secured-personal-loan-from-a-non-sba-bank-count-as-my-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."]}