For SBA lenders
Short answer
Yes, unencumbered business assets already owned by the borrower can count toward the equity injection if properly valued and documented.
The value of existing equipment, real estate, or other unencumbered assets contributed by the borrower to the new or acquired business can be considered part of the equity injection. These assets must be valued at their fair market value by an independent appraiser, or other acceptable valuation method, and clear title must be demonstrated.
A borrower acquiring a printing business plans to contribute a large, unencumbered printing press they already own, valued at $75,000 by an independent appraisal. This $75,000 can be recognized as part of the required equity injection for the acquisition.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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