SBA 7(a) Q&A
Short answer
You can contribute certain non-cash assets such as business-related equipment you already own (at its appraised value), or a seller note on full standby, to fulfill the 10% equity injection.
SBA rules allow for non-cash assets to count toward the equity injection if properly valued and documented. Contributed equipment must be appraised by an independent third party. Seller notes must be on full standby (no payments for the life of the SBA loan or at least two years) and fully subordinated to the SBA loan.
For an $800,000 acquisition requiring $80,000 equity, you could contribute $40,000 in cash and a piece of equipment you own (e.g., a commercial vehicle) with an appraised value of $40,000. Or, $40,000 cash and a $40,000 seller note on full standby.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
More on what counts toward the 10%
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