{"ok":true,"canonical_url":"https://dealroom.so/glossary/eligible-source","api_url":"https://dealroom.so/api/public/glossary/eligible-source","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":"eligible-source","term":"Eligible Source","group":"Your money in the deal","definition":"This refers to the acceptable origins of your equity injection for an SBA loan. The SBA has specific rules about where your down payment can come from to ensure it's truly your money.","what_it_means":"Your equity injection must come from personal funds that are 'seasoned' (in your account for at least 90 days) or from other verifiable, unencumbered sources like a gift from an immediate family member. Funds that are 'round-tripped' or borrowed against the business's assets are not eligible. Be prepared to provide bank and brokerage statements to prove the source and seasoning of your cash.","url":"https://dealroom.so/glossary/eligible-source","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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"slug":"gift-letter","term":"Gift letter","url":"https://dealroom.so/glossary/gift-letter"}],"related_questions":[{"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 documentation is needed to verify the source of my cash equity injection?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-needed-to-verify-the-source-of-my-cash-equity-injection"},{"question":"What documentation is required to verify the source of my cash equity injection?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-required-to-verify-the-source-of-my-cash-equity-injection"},{"question":"What exactly constitutes \"unencumbered liquid assets\" as a source for the required equity injection?","url":"https://dealroom.so/sba-7a/questions/what-exactly-constitutes-unencumbered-liquid-assets-as-a-source-for-the-required-equity-in"},{"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"}]},"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 — Eligible Source","url":"https://dealroom.so/glossary/eligible-source","source_type":"DealRoom Data"}}