Glossary · Your money in the deal
In short
This is cash invested in your acquisition by someone other than you or the seller, like a family member or passive investor. These funds can count towards your minimum equity injection.
For third-party equity to count towards your required injection, the SBA requires specific documentation, such as a gift letter or investment agreement. These funds must be unencumbered and cannot be repaid from the business's cash flow. Your lender will verify the source and ensure no disguised debt is involved.
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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