{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-if-i-contribute-existing-equipment-or-intellectual-property-instead-of-cash-for-my-eq","api_url":"https://dealroom.so/api/public/questions/what-if-i-contribute-existing-equipment-or-intellectual-property-instead-of-cash-for-my-eq","question":"What if I contribute existing equipment or intellectual property instead of cash for my equity injection?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, non-cash assets like equipment or intellectual property can count towards your equity injection, but they must be valued by an independent appraiser and properly documented as unencumbered.","rule":"SBA rules allow for non-cash assets to be counted as part of the equity injection, provided they are essential to the business, valued at their fair market value by an independent third party, and are unencumbered. The ownership of these assets must be transferred to the business.","example":"If you inject $20,000 worth of unencumbered, independently appraised specialized equipment into a new business entity for an acquisition, that $20,000 can count towards your 10% equity injection.","what_lenders_check":"Lenders require professional, independent appraisals to verify the fair market value of non-cash assets. They also ensure the assets are legally transferred to the business and free of any liens, as these assets must be 'at risk' alongside the cash equity.","required_facts":["Non-cash assets","Independent appraisal","Unencumbered assets","Fair market value","Essential to business"],"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 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":"Intellectual property","url":"https://dealroom.so/glossary/intellectual-property"},{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Intellectual Property Asset","url":"https://dealroom.so/glossary/intellectual-property-asset"},{"term":"Cash injection","url":"https://dealroom.so/glossary/cash-injection"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Cash equity","url":"https://dealroom.so/glossary/cash-equity"}],"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/what-if-i-contribute-existing-equipment-or-intellectual-property-instead-of-cash-for-my-eq","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."]}