{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-business-partner-s-personal-savings-for-my-equity-injection","api_url":"https://dealroom.so/api/public/questions/can-i-use-funds-from-a-business-partner-s-personal-savings-for-my-equity-injection","question":"Can I use funds from a business partner's personal savings for my equity injection?","topic":"Equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, if the business partner is also an owner of the acquiring business, their personal savings can count towards the total equity injection.","rule":"Equity injection must come from the owners of the small business. If your business partner is also an owner (e.g., a 50/50 partner), their personal savings, verified as unencumbered funds, can be combined with your own funds to meet the total required equity injection for the acquisition. Each owner's contribution should be clearly documented.","example":"You and your business partner are buying a business for $1,000,000, requiring a $100,000 equity injection. If you contribute $60,000 from your personal savings and your partner contributes $40,000 from their personal savings, this collectively meets the requirement.","what_lenders_check":"Lenders will require verification of the source of funds for each owner's contribution to the equity injection. They ensure that the funds are genuinely from the owners' unencumbered resources and not from a third party that doesn't hold an ownership stake.","required_facts":["Business partner funds","Owner's personal savings","Unencumbered cash","Total equity injection","Verified 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":"Can I use funds from a second mortgage on my personal home for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-second-mortgage-on-my-personal-home-for-my-equity-injection"},{"question":"Can I use funds from a personal line of credit for my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-line-of-credit-for-my-sba-7-a-equity-injection"},{"question":"Is an equity injection always required when getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/is-an-equity-injection-always-required-when-getting-an-sba-7-a-loan"},{"question":"Can money gifted from a family member be used for my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-money-gifted-from-a-family-member-be-used-for-my-sba-7-a-equity-injection"},{"question":"Can personal assets like a car or equipment I already own count toward my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-personal-assets-like-a-car-or-equipment-i-already-own-count-toward-my-equity-injection"},{"question":"Can I use an unsecured personal loan from a family member for my equity injection on an SBA 7(a) acquisition?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-unsecured-personal-loan-from-a-family-member-for-my-equity-injection-on-an-sb"}],"related_terms":[{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Use of funds","url":"https://dealroom.so/glossary/use-of-funds"},{"term":"Personal Funds","url":"https://dealroom.so/glossary/personal-funds"},{"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-i-use-funds-from-a-business-partner-s-personal-savings-for-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."]}