{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-cash-out-refinance-of-my-investment-property-count-towards-my-sba-7-a-dow","api_url":"https://dealroom.so/api/public/questions/can-funds-from-a-cash-out-refinance-of-my-investment-property-count-towards-my-sba-7-a-dow","question":"Can funds from a cash-out refinance of my investment property count towards my SBA 7(a) down payment?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, funds from a cash-out refinance of an investment property can count towards your down payment, provided they are unencumbered and properly documented.","rule":"SBA rules permit the use of funds derived from the sale or refinancing of personal assets, including investment properties, for equity injection. The key is to demonstrate that these funds are truly the borrower's capital, unencumbered by secondary loans or repayment obligations that would compete with the SBA loan. Documentation like refinance statements and bank deposits are required.","example":"A buyer refinances an unencumbered investment property, generating $100,000 cash, which is deposited into their personal bank account. This $100,000 can be used for the equity injection, provided the lender verifies the source with closing documents and bank statements.","what_lenders_check":"Lenders will confirm that the funds are genuinely the borrower's and not subject to any repayment terms that would impact the borrower's ability to service the SBA debt. They will review the refinance documents and bank statements for clear traceability.","required_facts":["Cash-out refinance","Investment property","Unencumbered funds","Documented source"],"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":"Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?","url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-"},{"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"}],"related_terms":[{"term":"Cash-out refinance","url":"https://dealroom.so/glossary/cash-out-refinance"},{"term":"Cash-out","url":"https://dealroom.so/glossary/cash-out"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"}],"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-funds-from-a-cash-out-refinance-of-my-investment-property-count-towards-my-sba-7-a-dow","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."]}