SBA 7(a) Q&A
Short answer
Yes, if the business partner is also an owner of the acquiring business, their personal savings can count towards the total equity injection.
Equity injection must come from the owners of the small business. If your business partner is also an owner (e.g., a 50/50 partner), their personal savings, verified as unencumbered funds, can be combined with your own funds to meet the total required equity injection for the acquisition. Each owner's contribution should be clearly documented.
You and your business partner are buying a business for $1,000,000, requiring a $100,000 equity injection. If you contribute $60,000 from your personal savings and your partner contributes $40,000 from their personal savings, this collectively meets the requirement.
Insider move
Lenders will require verification of the source of funds for each owner's contribution to the equity injection. They ensure that the funds are genuinely from the owners' unencumbered resources and not from a third party that doesn't hold an ownership stake.
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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