Glossary · Your money in the deal
In short
This refers to cash or assets you provide for the equity injection that are free from any liens, pledges, or restrictions. The SBA requires your equity injection to be truly yours and not borrowed against other assets.
For your SBA 7(a) loan, your down payment (equity injection) must come from unencumbered funds. This means you can't use a loan against your home (like a HELOC) or other assets to fund it, unless that loan is fully subordinated to the SBA loan. Provide bank statements or brokerage statements showing clear ownership and seasoning 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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