SBA loan basics
Short answer
Yes, personal cash savings, personal investments, and even certain other unencumbered personal assets can typically be used to satisfy the equity injection requirement for an SBA 7(a) loan.
The SBA allows a borrower's own capital, including liquid assets such as cash from savings, investment accounts, or unencumbered personal real estate, to count towards the required equity injection. The funds must be truly 'at risk' in the business and not borrowed funds from another source.
An applicant has $75,000 in a personal savings account and needs a $50,000 equity injection. They can use $50,000 from their savings. Alternatively, if they have an unencumbered piece of land valued at $100,000, a portion of its equity could be used as the injection.
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 2026-06-13. 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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