SBA 7(a) Q&A
Short answer
Yes, an unsecured personal loan from a family member can count as equity injection, provided it is on full standby to the SBA loan and properly documented.
A loan from an associate or family member can be considered equity if it is on full standby, meaning no payments of principal or interest are made until the SBA loan is repaid. This arrangement must be formally documented with a subordination agreement.
If your uncle lends you $50,000 for your $100,000 equity injection, the lender will require a signed promissory note and subordination agreement from your uncle, stating he will not receive payments until the SBA loan is paid in full.
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 equity injection
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day