SBA 7(a) Q&A
Short answer
Yes, a buyer's existing business assets that are critical to the acquired business's operation can be valued and count towards the equity injection, provided they are properly appraised and transferred to the new business.
Non-cash assets, including equipment or intellectual property, owned by the buyer and contributed to the acquired business can be considered part of the equity injection. These assets must be valued at their fair market value by an independent appraiser and verified by the lender. They must be essential to the business's operations.
A buyer acquiring a landscaping business already owns $25,000 worth of specialized mowers and trailers. If these assets are appraised at $25,000 and transferred to the acquired business, they can count towards the buyer's equity injection.
Insider move
Lenders require independent, professional appraisals for non-cash assets to ensure their value is accurate and defensible. They also verify that the assets are truly owned by the buyer and are essential for the operation of the acquired business.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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