SBA 7(a) Q&A
Short answer
Lenders evaluate your personal liquidity by reviewing bank statements and investment accounts to ensure you have sufficient post-closing working capital and reserves.
Beyond the equity injection, lenders want to ensure the borrower has adequate personal financial reserves (liquidity) to support themselves and the business, especially during an acquisition's initial transition period. This means cash outside of the equity injection.
If you're investing $50,000 as equity, a lender might also want to see an additional $20,000-$30,000 in your personal bank accounts as a buffer for unexpected costs or to cover personal living expenses during the business's ramp-up.
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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