SBA loan basics
Short answer
Yes, under certain circumstances, non-cash assets such as appraised equipment or vehicles can count towards your required equity injection (down payment).
The SBA allows for certain non-cash assets to be included in the equity injection if they are valued at their fair market value and are essential to the business. This often applies to equipment or vehicles directly used in the business operation. The assets cannot be encumbered (have liens against them) and must be properly documented and appraised.
A business owner buying a landscaping company contributes their unencumbered commercial truck, independently appraised at $30,000, towards the 10% equity injection on a $300,000 loan. This $30,000 would count as part of their down payment.
Insider move
Lenders require an independent appraisal or valuation of any non-cash assets to confirm their fair market value. They also verify that these assets are unencumbered and directly contribute to the business's operation, ensuring they represent true equity.
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
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 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