Glossary · Your money in the deal
In short
This represents your ownership stake in a business. For an SBA loan, you must show a sufficient equity interest (down payment) in the deal.
The SBA generally requires a minimum equity injection from the buyer, typically 10-20% of the total project costs, to demonstrate your commitment. This equity can come from cash, seasoned funds, or sometimes a seller note on full standby. Lenders verify the source of these funds.
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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