SBA 7(a) Q&A
Short answer
If the value of your stock portfolio designated for equity injection drops before closing, you will likely need to cover the shortfall with additional funds.
The SBA requires the equity injection to be a specific amount, and if the value of assets intended for injection decreases, the borrower is responsible for making up the difference. Lenders will verify the final amount of equity injected at or before closing, and any deficit from market fluctuations would need to be addressed to meet the required injection.
You originally planned to liquidate $120,000 from your stock portfolio for a $100,000 cash equity injection, providing a buffer. If the portfolio value drops, yielding only $90,000 after liquidation, you would need to find an additional $10,000 from other acceptable sources to meet the $100,000 requirement.
Insider move
Lenders are concerned with ensuring the full, required equity injection is present and available at closing. They will monitor the value of non-cash assets or fluctuating investments until the funds are irrevocably committed to the business.
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.
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