SBA 7(a) Q&A
Short answer
Yes, funds from an existing business you own can count as equity injection, provided the source business is financially sound and the transaction is well-documented.
Equity injection can come from various verifiable sources, including funds from another business owned by the borrower. The lender must ensure the contributing business has sufficient liquidity and that the transfer of funds does not negatively impact its own financial stability.
If you own a separate profitable business with $150,000 in excess cash, you could transfer $100,000 from that business's bank account to the new acquisition's operating account to serve as part of your required equity injection.
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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