SBA 7(a) Q&A
Short answer
Yes, funds borrowed against a personal brokerage account can be used for equity injection if the loan is fully secured by marketable securities and meets specific SBA requirements.
Funds used for equity injection must be unencumbered. If you borrow against your brokerage account, the loan used to obtain these funds must be on reasonable terms and fully secured by marketable securities or other acceptable assets that are not part of the business acquisition. The lender will verify the source and terms of this loan.
A buyer needs a $100,000 equity injection. They take out a personal loan for $100,000, fully secured by $200,000 worth of stocks in their brokerage account. The lender will review this personal loan to ensure it's not secured by the acquired business's assets and that the terms are appropriate.
Insider move
Lenders need to ensure the funds are genuinely unencumbered and that the personal loan used to obtain them does not create an unacceptable lien on the acquired business's assets or jeopardize the buyer's personal financial stability.
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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