{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-the-value-of-equipment-i-already-own-and-contribute-to-the-acquired-business-count-tow","api_url":"https://dealroom.so/api/public/questions/can-the-value-of-equipment-i-already-own-and-contribute-to-the-acquired-business-count-tow","question":"Can the value of equipment I already own and contribute to the acquired business count towards my equity injection?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, equipment you currently own that is directly contributed and essential to the acquired business can count towards your equity injection, provided its fair market value is independently appraised.","rule":"Non-cash assets, such as equipment, machinery, or vehicles that you own personally or through another entity, can be included in your equity injection. For these assets to count, they must be necessary for the acquired business's operation, independently valued at their current fair market value by a qualified appraiser, and transferred unencumbered to the acquired business at closing.","example":"A buyer acquiring a construction company has a fully-owned excavator valued at $70,000. If this excavator is essential for the acquired business and appraised at $70,000, it can fulfill that portion of the required equity injection for a $1,000,000 acquisition.","what_lenders_check":"Lenders will require verification of ownership, an independent appraisal by a qualified professional, and proof of legal transfer of the equipment to the acquired business entity, free of any liens or encumbrances.","required_facts":["Buyer asset ownership","Asset appraisal","Contribution to business","Asset necessity","Lien status"],"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":"Loan-to-Value","url":"https://dealroom.so/glossary/loan-to-value"},{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"Loan-to-value ratio","url":"https://dealroom.so/glossary/loan-to-value-ratio"},{"term":"Alienate the Business","url":"https://dealroom.so/glossary/alienate-the-business"},{"term":"Office of Franchise and Business Opportunity","url":"https://dealroom.so/glossary/office-of-franchise-and-business-opportunity"},{"term":"Business Fair Market Value","url":"https://dealroom.so/glossary/business-fair-market-value"}],"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-the-value-of-equipment-i-already-own-and-contribute-to-the-acquired-business-count-tow","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."]}