SBA 7(a) Q&A
Short answer
Yes, all individuals or entities providing funds for the equity injection, especially those with ownership stakes, must be fully disclosed to the SBA.
The SBA requires full transparency regarding the sources of funds for equity injection to ensure they are from eligible sources and do not create undisclosed affiliation issues or excessive leverage. All owners of 20% or more must also provide a personal guaranty.
If you are buying a business for $1,000,000 and your $100,000 equity injection comes from your personal savings ($60,000) and an uncle ($20,000) and a friend ($20,000), all three sources must be disclosed, and evidence of the funds provided.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
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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