SBA 7(a) Q&A
Short answer
Eligible personal assets for equity injection include verified liquid cash, marketable securities, or a fully-standby seller note.
The SBA requires the equity injection to be from verifiable sources. This typically means cash, but can also include assets that are readily convertible to cash, such as publicly traded stocks, or a seller note on full standby, which essentially leaves capital in the business.
For a $600,000 project, a buyer needing $60,000 equity could provide $40,000 from their savings account and $20,000 from selling stocks.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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.
More on down payment & equity injection
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day