SBA 7(a) Q&A
Short answer
No, the existing cash in the acquired business's bank account generally cannot count towards your buyer's equity injection for an SBA 7(a) loan.
Equity injection must represent new capital brought into the business by the buyer. Existing cash within the business prior to acquisition is considered an asset of the business being purchased, not a new contribution from the buyer. The SBA requires the buyer to demonstrate a direct capital injection from their own resources or eligible third parties.
A buyer is acquiring a business for $600,000. The business has $50,000 in its operating account. The buyer still needs to inject at least $60,000 (10% of project cost) from their personal funds or other eligible sources. The $50,000 existing cash remains an asset of the business.
Lenders verify that the equity injection is truly new money from the buyer. They review pre-acquisition balance sheets and bank statements to distinguish existing business assets from the buyer's new capital contribution to prevent misrepresentation.
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.
More on what counts toward the 10%
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