SBA 7(a) Q&A
Short answer
Yes, business assets you already own can sometimes count as part of your equity injection, provided they are unencumbered, independently appraised, and directly contributed to the acquired business.
Non-cash assets can be part of the equity injection if they are valued by a qualified independent appraiser, are unencumbered by liens, and are essential to the operation of the acquired business. The asset must be transferred to the new business.
If you own a fully paid-for commercial oven valued at $20,000 and are acquiring a bakery, you could contribute this oven as part of your $100,000 equity injection, requiring an independent appraisal of its value.
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 what counts toward the 10%
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