SBA 7(a) Q&A
Short answer
Yes, in certain circumstances, existing business assets you already own can count towards your equity injection, provided they are essential to the acquired business and properly valued.
SBA rules allow for the injection of assets other than cash, such as business-related equipment or real estate, into the new business as part of the equity injection. These assets must be valued at their fair market value by an independent appraiser and must be vital to the ongoing operation of the business being acquired.
A buyer is acquiring a $1,000,000 business and needs a $100,000 equity injection. The buyer already owns a specialized piece of equipment valued at $50,000 essential for the acquired business's operations. This $50,000 can be used towards the injection, requiring only an additional $50,000 in cash.
Insider move
Lenders will require a current, independent appraisal of any non-cash assets to confirm their fair market value and ensure they are essential to the business. They also verify that there are no liens against these assets.
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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