SBA 7(a) Q&A
Short answer
Yes, non-cash assets like equipment or intellectual property can count towards your equity injection, but they must be valued by an independent appraiser and properly documented as unencumbered.
SBA rules allow for non-cash assets to be counted as part of the equity injection, provided they are essential to the business, valued at their fair market value by an independent third party, and are unencumbered. The ownership of these assets must be transferred to the business.
If you inject $20,000 worth of unencumbered, independently appraised specialized equipment into a new business entity for an acquisition, that $20,000 can count towards your 10% equity injection.
Insider move
Lenders require professional, independent appraisals to verify the fair market value of non-cash assets. They also ensure the assets are legally transferred to the business and free of any liens, as these assets must be 'at risk' alongside the cash equity.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. 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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