SBA 7(a) Q&A
Short answer
No, a personal loan from a non-SBA bank, even if secured by personal assets, generally cannot count as an equity injection for an SBA 7(a) loan.
Equity injection must be from the borrower's unencumbered personal resources or from fully subordinated, unsecured debt. Funds that are themselves borrowed from a third party (unless it's a fully subordinated standby loan from an investor) are not considered true equity at risk and are ineligible.
If you take out a personal loan for $50,000 from your local bank, secured by your car, you cannot use these funds as your equity injection for a $500,000 SBA loan. The funds must originate from your own verifiable, unencumbered resources.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. 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.
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