SBA 7(a) Q&A
Short answer
Yes, funds obtained from selling personal investments, such as stocks, bonds, or mutual funds, are generally acceptable for your equity injection. These funds are considered unencumbered cash.
The SBA considers funds derived from the sale of personal assets, including investments, as acceptable sources for equity injection, provided proper documentation of the sale and the funds' deposit into the borrower's account is maintained. This proves the funds are genuinely available and unencumbered.
A buyer needs a $100,000 down payment. They sell $70,000 worth of personal stock holdings and combine it with $30,000 from savings. The entire $100,000 qualifies as equity injection.
Insider move
Lenders require clear documentation of the sale of assets and the transfer of funds to the borrower's account to verify the source and availability. They ensure the assets were truly personal and not already pledged.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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