{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-if-my-equity-injection-funds-are-from-the-sale-of-a-personal-asset-like-a-boat-or-rv","api_url":"https://dealroom.so/api/public/questions/what-if-my-equity-injection-funds-are-from-the-sale-of-a-personal-asset-like-a-boat-or-rv","question":"What if my equity injection funds are from the sale of a personal asset like a boat or RV?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, funds from the sale of a personal asset like a boat or RV can count towards your equity injection, provided the sale is properly documented and the funds are traceable.","rule":"SBA rules allow funds derived from the sale of personal assets to be used for equity injection. The key is clear documentation of the sale (e.g., bill of sale, title transfer) and verification that the funds were genuinely received by the buyer and are now liquid. The funds must be the buyer's unencumbered cash.","example":"A buyer sells their personal RV for $40,000, receiving the funds via a certified check, which is then deposited into their bank account. This $40,000 can be used as part of their equity injection for a business acquisition, with the bill of sale and bank statements serving as documentation.","what_lenders_check":"Lenders verify the legitimacy of the asset sale and ensure the funds are truly from the buyer's unencumbered assets, not from another loan or an undisclosed third party. They require a clear paper trail from the sale to the buyer's account.","required_facts":["Personal asset sale","Documentation of sale","Funds traceability","Unencumbered cash"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","SBA Form 1919 - Borrower Information Form","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":"SBA Form 1919 - Borrower Information Form","url":"https://www.sba.gov/sites/default/files/2025-03/2025.02.27%20Form%201919%20-%20Updates%20%28FINAL%29_03-12-2025%20%281%29.pdf"},{"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":"Asset sale","url":"https://dealroom.so/glossary/asset-sale"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Personal Funds","url":"https://dealroom.so/glossary/personal-funds"},{"term":"Indemnification from the Seller","url":"https://dealroom.so/glossary/indemnification-from-the-seller"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-if-my-equity-injection-funds-are-from-the-sale-of-a-personal-asset-like-a-boat-or-rv","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."]}