SBA 7(a) Q&A
Short answer
Yes, equipment you currently own that is directly contributed and essential to the acquired business can count towards your equity injection, provided its fair market value is independently appraised.
Non-cash assets, such as equipment, machinery, or vehicles that you own personally or through another entity, can be included in your equity injection. For these assets to count, they must be necessary for the acquired business's operation, independently valued at their current fair market value by a qualified appraiser, and transferred unencumbered to the acquired business at closing.
A buyer acquiring a construction company has a fully-owned excavator valued at $70,000. If this excavator is essential for the acquired business and appraised at $70,000, it can fulfill that portion of the required equity injection for a $1,000,000 acquisition.
Insider move
Lenders will require verification of ownership, an independent appraisal by a qualified professional, and proof of legal transfer of the equipment to the acquired business entity, free of any liens or encumbrances.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. 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.
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