SBA loan basics
Short answer
Yes, if you contribute real estate you personally own to the business, its fair market value can count as part of your equity injection (down payment) for an SBA 7(a) loan.
Non-cash assets, including real estate, can be included in the equity injection if properly valued and documented. The equity contribution is based on the appraised or fair market value of the asset at the time of injection, less any outstanding liens or encumbrances.
A buyer is purchasing a business for $700,000 and needs a $70,000 equity injection. The buyer contributes $20,000 cash and transfers a personally owned commercial property, valued at $100,000 with a $50,000 mortgage, into the business. The net equity of $50,000 from the property (plus the $20,000 cash) satisfies the $70,000 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 2026-06-14. 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.
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