SBA 7(a) Q&A
Short answer
Yes, proceeds from the sale of an investment property are an acceptable source for your equity injection, provided the funds are fully disbursed and unencumbered at the time of injection.
SBA rules permit the use of proceeds from the sale of personal or investment assets for equity injection. The funds must be verified as received and unencumbered, typically requiring a settlement statement, bank statements showing the deposit, and proof of clear title prior to sale.
If you sell an investment property for $200,000 and need $150,000 for equity injection for a $1.5 million business acquisition, the net proceeds deposited into your account can be used. You would provide documentation of the sale and bank statements.
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 2026-06-14. 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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