{
  "title": "What is an equity injection? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-an-equity-injection/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-11-06",
  "updated": "2026-11-06",
  "section": "Glossary",
  "keyword": "Equity injection",
  "short_answer": "An equity injection is the money a buyer must put into a business purchase that an SBA 7(a) loan helps pay for. For a first-time buyer of a business, the SBA requires at least 10% of the total project cost, and at least half of that must be the buyer's own money.",
  "facts": {
    "Purchase price": "$2,000,000",
    "Working capital": "$200,000",
    "Closing costs": "$50,000",
    "Total project cost": "$2,250,000",
    "Required equity injection (10%)": "$225,000",
    "Minimum from buyer's own cash (half)": "$112,500",
    "Most that limited sources may cover": "$112,500",
    "Seller note on full standby, used in this example": "$112,500",
    "SBA loan and other debt": "$2,025,000"
  },
  "sources": [
    "https://legacy.sba.gov/document/sop-50-10-lender-development-company-loan-programs",
    "https://legacy.sba.gov/document/information-notice-5000-880695-issuance-sop-50-10-81",
    "https://www.grasshopper.bank/who-we-are/blog/navigating-sba-sop-50-10-8-1-core-overhauls-and-crucial-technical-corrections/"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}