{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-i-use-business-assets-i-already-own-like-equipment-from-a-previous-venture-as-part-of-","api_url":"https://dealroom.so/api/public/questions/can-i-use-business-assets-i-already-own-like-equipment-from-a-previous-venture-as-part-of-","question":"Can I use business assets I already own, like equipment from a previous venture, as part of my equity injection?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, business assets you already own can sometimes count as part of your equity injection, provided they are unencumbered, independently appraised, and directly contributed to the acquired business.","rule":"Non-cash assets can be part of the equity injection if they are valued by a qualified independent appraiser, are unencumbered by liens, and are essential to the operation of the acquired business. The asset must be transferred to the new business.","example":"If you own a fully paid-for commercial oven valued at $20,000 and are acquiring a bakery, you could contribute this oven as part of your $100,000 equity injection, requiring an independent appraisal of its value.","what_lenders_check":"Lenders verify the ownership, value, and lien status of any non-cash assets proposed for equity injection. They require an independent appraisal to ensure accurate valuation and confirmation that the assets are truly essential for the business's operation.","required_facts":["Non-cash asset contribution","Independent appraisal","Unencumbered assets","Essential business use","Asset transfer"],"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":"Business Assets","url":"https://dealroom.so/glossary/business-assets"},{"term":"Doing business as name","url":"https://dealroom.so/glossary/doing-business-as-name"},{"term":"Business partnership","url":"https://dealroom.so/glossary/business-partnership"},{"term":"Rollover as Business Start-Up","url":"https://dealroom.so/glossary/rollover-as-business-start-up"},{"term":"Rollover as Business Startup Plan","url":"https://dealroom.so/glossary/rollover-as-business-startup-plan"},{"term":"Assets","url":"https://dealroom.so/glossary/assets"}],"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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-i-use-business-assets-i-already-own-like-equipment-from-a-previous-venture-as-part-of-","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."]}