Glossary · Your money in the deal
In short
The ownership interest in a business, representing the value remaining after all liabilities are paid. For a buyer, it's the cash or assets directly invested in the deal.
Your equity injection is the portion of the purchase price you contribute directly, demonstrating your commitment and reducing the loan-to-value ratio. The SBA requires a minimum equity injection, typically 10-15% of the total project cost. Lenders verify the source and seasoning of these funds to ensure they are genuinely "unencumbered" and not disguised debt.
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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