{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-personal-investment-account-like-stocks-or-bonds-be-used-for-my-equity-in","api_url":"https://dealroom.so/api/public/questions/can-funds-from-a-personal-investment-account-like-stocks-or-bonds-be-used-for-my-equity-in","question":"Can funds from a personal investment account, like stocks or bonds, be used for my equity injection?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, funds from a personal investment account can be used for your equity injection, provided they are properly liquidated and documented. The funds must be unencumbered and directly contributed to the business.","rule":"SBA allows the use of personal liquid assets as part of the equity injection. The funds must be converted to cash and transferred to the business's operating account. The lender must verify that these funds are genuinely the borrower's and are not borrowed against assets of the business being acquired.","example":"If you need a $100,000 equity injection, you could sell $100,000 worth of stocks from your personal brokerage account, deposit the cash, and inject it into the acquired business.","what_lenders_check":"Lenders will require verification of the liquidation of these assets, bank statements showing the deposit into the borrower's account, and then the transfer to the business, ensuring a clear audit trail and verifying the funds are truly unencumbered.","required_facts":["Liquid assets","Personal investment","Unencumbered funds","Documentation required"],"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":"Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/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-7a/questions/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-7a/questions/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-7a/questions/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-7a/questions/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-7a/questions/what-is-the-sba-s-minimum-required-equity-injection-percentage-for-a-business-acquisition"}],"related_terms":[{"term":"Equity Investment","url":"https://dealroom.so/glossary/equity-investment"},{"term":"Personal Investment","url":"https://dealroom.so/glossary/personal-investment"},{"term":"Retirement account funds","url":"https://dealroom.so/glossary/retirement-account-funds"},{"term":"Personal Funds","url":"https://dealroom.so/glossary/personal-funds"},{"term":"Operating Account","url":"https://dealroom.so/glossary/operating-account"},{"term":"Brokerage account","url":"https://dealroom.so/glossary/brokerage-account"}],"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-personal-investment-account-like-stocks-or-bonds-be-used-for-my-equity-in","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."]}