Glossary · Your money in the deal
In short
This is part of your equity injection specifically designated to fund the business's immediate operational needs after acquisition, like inventory or payroll. It's often required by the SBA.
Beyond the down payment for the purchase price, the SBA often requires a portion of your equity injection to be set aside for working capital. This ensures the business has enough liquidity to operate smoothly post-acquisition, covering initial expenses or unforeseen needs. This isn't optional; it's a condition of the loan.
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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