Glossary · Your money in the deal
In short
This refers to funds that appear to be part of the buyer's equity injection but are actually derived from the business being acquired or from another loan that isn't properly disclosed. It's a major red flag for SBA lenders.
The SBA strictly prohibits using funds from the target business or other undisclosed loans as your equity injection. Lenders will scrutinize your source of funds through bank statements and other documentation to ensure your equity is truly "out of pocket" and not "phantom." This is a common pitfall for inexperienced buyers.
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.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
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