{"ok":true,"canonical_url":"https://dealroom.so/glossary/commingling-of-funds","api_url":"https://dealroom.so/api/public/glossary/commingling-of-funds","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":"commingling-of-funds","term":"Commingling of Funds","group":"Reading the business","definition":"Mixing personal funds with business funds, or funds from separate businesses, in a single account. This practice creates accounting headaches, obscures true business performance, and is a red flag for SBA lenders.","what_it_means":"During due diligence, look for signs of commingling in the seller's bank statements. This makes it difficult to accurately assess the business's profitability and cash flow. After acquisition, ensure you maintain separate business and personal accounts to avoid audit issues and maintain clear financial records.","url":"https://dealroom.so/glossary/commingling-of-funds","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"}],"related":[{"slug":"bank-statement","term":"Bank Statement","url":"https://dealroom.so/glossary/bank-statement"},{"slug":"audit-trail","term":"Audit trail","url":"https://dealroom.so/glossary/audit-trail"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"}],"related_questions":[{"question":"Can I use funds from a personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can funds from an unsecured personal line of credit be considered part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-an-unsecured-personal-line-of-credit-be-considered-part-of-my-equity-inject"},{"question":"How does the SBA verify the source of my equity injection funds?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-the-source-of-my-equity-injection-funds"},{"question":"What documentation is required to prove the source of my equity injection funds?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-required-to-prove-the-source-of-my-equity-injection-funds"},{"question":"What specific documentation is required to verify the source of my equity injection funds?","url":"https://dealroom.so/sba-7a/questions/what-specific-documentation-is-required-to-verify-the-source-of-my-equity-injection-funds"},{"question":"How does a lender verify the source of a borrower's equity injection funds?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-of-a-borrower-s-equity-injection-funds"}]},"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 — Commingling of Funds","url":"https://dealroom.so/glossary/commingling-of-funds","source_type":"DealRoom Data"}}