SBA 7(a) Q&A
Short answer
Yes, new inventory purchased by the buyer immediately prior to closing and brought into the acquired business can count towards the equity injection, provided its value is verified and it wasn't purchased with borrowed funds from the transaction.
Tangible assets contributed by the buyer to the business can count as equity injection. For inventory, the value must be verifiable through invoices or an appraisal if significant. The lender will ensure these funds used to purchase the inventory were from eligible equity sources (e.g., personal savings, gift funds) and not from the SBA loan proceeds or other ineligible borrowed funds.
You are acquiring a retail business for $700,000, requiring a $70,000 equity injection. You purchase $20,000 worth of new, relevant inventory from your personal savings a week before closing. This $20,000, supported by invoices, can count towards your $70,000 equity 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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