{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-a-non-owner-investor-provides-funds-for-my-equity-injection-what-documentation-do-they-","api_url":"https://dealroom.so/api/public/questions/if-a-non-owner-investor-provides-funds-for-my-equity-injection-what-documentation-do-they-","question":"If a non-owner investor provides funds for my equity injection, what documentation do they need to provide?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Non-owner investor funds require a statement confirming their investment as equity, not a loan, and proof of funds origin similar to personal equity, tracing the money to your business.","rule":"For funds contributed by a non-owner investor (who will not have an ownership stake requiring a personal guarantee), the lender must verify these are genuine equity contributions and not disguised loans. Documentation includes an investment agreement and tracing of funds from the investor's verifiable account to the business's account.","example":"An investor contributes $75,000 to the buyer's equity. The lender requires an investment agreement stating the funds are equity, the investor's bank statements showing the funds, and the wire transfer confirmation to the business's operating account.","what_lenders_check":"Lenders rigorously vet investor funds to ensure they are truly equity, unencumbered, and from a legitimate source. They are cautious about arrangements that could be construed as debt, especially from parties with a potential interest in the business.","required_facts":["Non-owner investor","Equity contribution","Investment agreement","Proof of funds origin","Funds traceability"],"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":"Non-Owner Investor","url":"https://dealroom.so/glossary/non-owner-investor"},{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Owner Equity","url":"https://dealroom.so/glossary/owner-equity"},{"term":"Equity Owner","url":"https://dealroom.so/glossary/equity-owner"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-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/if-a-non-owner-investor-provides-funds-for-my-equity-injection-what-documentation-do-they-","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."]}