SBA 7(a) Q&A
Short answer
Yes, the fair market value of unencumbered equipment you already own can sometimes be used as a non-cash equity injection for an SBA 7(a) acquisition, if it is essential to the acquired business.
Non-cash equity injections are permitted if the assets (like equipment) are valued by an independent third party, are essential to the business, and are unencumbered (meaning no liens against them). The value contributed must be supported by an appraisal or other acceptable valuation method.
A buyer acquiring a printing business already owns a specialized printing press with a fair market value of $75,000. If this press is necessary for the acquired business's operations and is unencumbered, the $75,000 value can count towards the equity injection, subject to an independent appraisal.
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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