Glossary · Your money in the deal
In short
Cash that is free from any liens, pledges, or restrictions. The SBA requires a buyer's equity injection to be unencumbered to ensure it's truly "at risk."
Your cash down payment must be verifiable as unencumbered. This means it can't be borrowed against other assets or subject to any claims. Lenders will require bank statements and potentially gift letters to confirm your funds are truly available and free of obligations.
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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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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