SBA 7(a) Q&A
Short answer
Unencumbered liquid assets typically include cash, readily marketable securities, or other assets free of liens and easily convertible to cash within a short timeframe.
The SBA requires a minimum equity injection, and these funds must be from unencumbered personal resources. 'Unencumbered' means they are not borrowed funds and are not subject to liens or pledges. 'Liquid' means they can be converted to cash quickly to be used for the business acquisition.
A buyer contributes $75,000 in cash from their savings account, $25,000 from the sale of publicly traded stock, and a $10,000 certificate of deposit. These are all considered unencumbered liquid assets.
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 2026-06-14. 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.
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