{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition","api_url":"https://dealroom.so/api/public/questions/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition","question":"How much cash must I personally inject for an SBA 7(a) business acquisition?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"You must personally inject at least 10% of the project cost, which can be entirely cash or a combination of cash and eligible non-cash assets.","rule":"For a change of ownership, the buyer is required to inject a minimum of 10% of the total project cost. At least half of this 10% (i.e., 5% of the total project cost) must typically be unencumbered cash or cash equivalents from the borrower's personal funds. The other half can be from seller notes on full standby.","example":"If the total project cost for a business acquisition is $1,000,000, the minimum equity injection is $100,000. Of this, at least $50,000 must be your personal cash, with the remaining $50,000 potentially coming from a standby seller note.","what_lenders_check":"Lenders rigorously verify the source and liquidity of the cash injection, ensuring it is unencumbered and directly from the buyer. They trace the funds to confirm the transfer to the business or escrow account.","required_facts":["Minimum 10%","Project cost","Personal cash","Unencumbered funds","Seller note standby"],"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":"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"},{"question":"What is an 'equity injection' or 'down payment' for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-an-equity-injection-or-down-payment-for-an-sba-7-a-loan"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"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"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"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/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition","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."]}