Will SBA Lenders Work With Me If My Equity Injection Comes From a Personal Loan?
I’m looking to acquire a business valued up to $4m. I have recently been pre-approved for a personal unsecured loan up to $550k that I intend to use as my equity injection. The funds will be deposited into my business bank account from my personal bank as a "capital contribution" to demonstrate liquidity.
I’ve heard mixed opinions on whether SBA lenders will accept this structure. Some say it’s fine as long as I can show repayment ability without the use of the business and that it is capital contribution, while others mention it must be “unborrowed funds.”
Has anyone successfully used a personal loan as their SBA down payment? And are there specific lenders or SBA-friendly banks who are more open to working with this setup?
Would really appreciate any insights or introductions. Thank you!
