SBA loan basics
Short answer
Yes, personal assets like unencumbered equipment or real estate can count toward your SBA 7(a) equity injection if properly valued and documented.
The SBA permits the use of unencumbered personal assets, such as vehicles, equipment, or real estate (not the business collateral), as part of the equity injection. These assets must be valued by an independent appraiser, and the borrower must transfer title of the asset to the business. The asset must be directly used in the business.
A borrower starting a landscaping business owns a $30,000 truck outright. An independent appraiser values the truck at $28,000. If the borrower transfers the truck's title to the new business, this $28,000 can count towards their required equity injection.
Insider move
Lenders require independent appraisals for all non-cash equity contributions to ensure fair market value. They also verify that the asset is unencumbered and that legal title is properly transferred to the business for its exclusive use.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. 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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