{"ok":true,"canonical_url":"https://dealroom.so/glossary/90-day-rule","api_url":"https://dealroom.so/api/public/glossary/90-day-rule","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"90-day-rule","term":"90-Day Rule","group":"The loan itself","definition":"This SBA rule limits what collateral or equity can be injected or released within 90 days of an SBA loan application or disbursement. It prevents circular funding or \"round-tripping.\"","what_it_means":"The SBA's 90-Day Rule is designed to prevent buyers from injecting funds into the business and then immediately pulling them back out or using them to pay off personal debt, masquerading as equity. Any funds or collateral injected or substantial payments made within 90 days of the loan application or closing will be scrutinized. Ensure your equity injection is \"seasoned\" and genuinely from your own resources.","url":"https://dealroom.so/glossary/90-day-rule","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"round-tripped","term":"Round-tripped","url":"https://dealroom.so/glossary/round-tripped"},{"slug":"disguised-debt","term":"Disguised debt","url":"https://dealroom.so/glossary/disguised-debt"}],"related_questions":[{"question":"What is the significance of the \"90-day rule\" regarding equity injection and prior payments?","url":"https://dealroom.so/for-lenders/questions/what-is-the-significance-of-the-90-day-rule-regarding-equity-injection-and-prior-payments"},{"question":"How does the '90-day rule' affect the calculation of SBA upfront guaranty fees for multiple loans?","url":"https://dealroom.so/for-lenders/questions/how-does-the-90-day-rule-affect-the-calculation-of-sba-upfront-guaranty-fees-for-multiple-"},{"question":"How does a lender ensure compliance with the '90-day rule' for guaranty fee payment for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-compliance-with-the-90-day-rule-for-guaranty-fee-payment-for-a-7-"},{"question":"What are the consequences if a lender fails to remit the SBA upfront guaranty fee within the 90-day requirement?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-a-lender-fails-to-remit-the-sba-upfront-guaranty-fee-within-t"},{"question":"What are the requirements for a lender to obtain an extension of the 90-day E-Tran authorization validity period?","url":"https://dealroom.so/for-lenders/questions/what-are-the-requirements-for-a-lender-to-obtain-an-extension-of-the-90-day-e-tran-authori"},{"question":"Are day-to-day operational expenses like rent or utilities an allowed use of SBA 7(a) loan funds?","url":"https://dealroom.so/sba-loans/basics/are-day-to-day-operational-expenses-like-rent-or-utilities-an-allowed-use-of-sba-7-a-loan-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — 90-Day Rule","url":"https://dealroom.so/glossary/90-day-rule","source_type":"DealRoom Data"}}