SBA loan basics
Short answer
"Your own money" for the down payment primarily includes cash from your personal savings or investments, but it can also include funds from other assets you own or from eligible gifts.
The equity injection must represent the borrower's true investment in the business. Acceptable sources of "your own money" include cash from savings or investment accounts, funds from the sale of personal assets, or cash equity in real estate used for the business (if not already fully leveraged). Gifted funds from close relatives, with no repayment expectation, also qualify as long as they are properly documented.
Sarah wants to buy a business for $400,000 and needs a $40,000 (10%) down payment. She has $25,000 in her savings account. Her parents gift her $15,000, providing a gift letter stating no repayment is expected. Both sums combined constitute her eligible "own money" equity 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
SBA Form 1919 - Borrower Information Form
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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