Glossary · Your money in the deal
In short
A cash reserve is liquid funds held aside for unexpected expenses, working capital needs, or emergencies after an acquisition. It acts as a buffer to ensure business stability.
SBA lenders often require a certain amount of cash reserve as part of your equity injection, especially for deals with tight cash flow projections or where significant working capital is needed post-closing. This shows you have sufficient funds beyond the purchase price to navigate unforeseen challenges. Plan for this as part of your total project costs.
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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