SBA 7(a) Q&A
Short answer
Yes, the fair market value of unencumbered personal real estate, not being acquired by the business, can potentially count towards your equity injection if it's contributed to the business or pledged as additional collateral.
The SBA permits equity injection to come from cash or certain unencumbered tangible assets. If you contribute personal real estate (e.g., land or a building you own personally, distinct from the acquired business's assets) to the operating company, or use its unencumbered equity value as collateral for a separate loan that funds the injection, it can count. An independent appraisal is required to establish the fair market value of the real estate.
You need a $100,000 equity injection. You own a vacation home with $150,000 in unencumbered equity. If this home's equity is formally pledged to the business or used to secure a personal loan that funds the injection, the appraised value of the contributed equity can count towards your $100,000 injection.
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.
More on what counts toward the 10%
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