Glossary · Your money in the deal
In short
Money injected by the buyer or seller that looks like equity but functions like a loan, often with an expectation of repayment. The SBA scrutinizes this to ensure true equity injection and proper debt structuring.
The SBA is wary of arrangements that attempt to circumvent equity injection rules, such as a 'gift' that's actually a loan you intend to repay. Any funds counting as equity must be truly 'at risk' without a fixed repayment obligation from the business. Be transparent with your lender about all funding sources to avoid issues.
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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