Glossary · Your money in the deal
In short
The portion of the total project costs that the buyer contributes from their own funds, not financed by the SBA loan or seller. It demonstrates your commitment and reduces the lender's risk, typically requiring 10-20% for an SBA 7(a) loan.
The SBA requires a minimum equity injection, typically 10% for established businesses, which must come from verifiable, unencumbered sources. This often comes from personal savings or a seller note on "standby." Be prepared to provide clear documentation of your funds' origin and availability.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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