SBA 7(a) Q&A
Short answer
Yes, funds from a private equity firm can count as equity injection if they represent an actual capital investment, are unsecured, and fully at risk.
Equity injection from a private equity firm must be verifiable, unconditional, and not subject to repayment during the SBA loan term. The investment must be in the form of equity or a fully subordinated, unsecured debt that meets full standby requirements.
If a private equity firm invests $200,000 into your acquisition for a 15% stake in the new business, this capital infusion can be counted towards your total equity injection, provided the funds are confirmed as equity and not a debt with repayment priority.
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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