SBA loan basics
Short answer
Yes, personal assets and cash savings are generally considered acceptable sources for your down payment (equity injection), provided they are unencumbered and properly documented.
The SBA encourages borrowers to invest their own capital into the business. Acceptable forms of equity injection include cash from savings, proceeds from the sale of personal assets (like stocks, real estate, or vehicles), or even the fair market value of contributed assets (like equipment) that will be used in the business, so long as these funds or assets are unencumbered by debt.
A borrower liquidates $50,000 from their personal savings account and $25,000 from selling a personal investment property. This $75,000 is then injected into the business as equity, with bank statements and sale documents provided as proof.
Insider move
Lenders require clear documentation to prove the source and unencumbered nature of the personal funds or assets. They will look for a 'seasoning' period (funds held for a certain time) or a clear audit trail to ensure the funds are genuinely the borrower's and not secretly borrowed from another source.
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 2026-06-13. 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.
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