SBA 7(a) Q&A
Short answer
Non-cash assets can count towards equity injection, but they must be independently valued by a qualified, disinterested third party, and the valuation must be documented.
The SBA permits non-cash assets, such as real estate or equipment, to be part of the equity injection, provided their fair market value is established through an appraisal or other acceptable valuation method performed by an independent expert. This ensures the value is legitimate and verifiable.
A buyer injecting $50,000 cash and a commercial vehicle valued at $20,000 would need an independent appraisal for the vehicle to verify its market value and include it in the total equity injection.
Insider move
Lenders need to ensure that the valuation of non-cash assets is credible and performed by an independent professional to prevent inflated equity claims and safeguard the loan. They confirm the asset is free of liens.
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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