{"ok":true,"canonical_url":"https://dealroom.so/glossary/fund-tracing","api_url":"https://dealroom.so/api/public/glossary/fund-tracing","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":"fund-tracing","term":"Fund Tracing","group":"Reading the business","definition":"The process lenders use to verify the source and legitimacy of your equity injection. They need to confirm your funds are truly \"seasoned\" and not disguised debt.","what_it_means":"Lenders will ask for bank statements and other documentation to trace your down payment funds back at least 90 days. This proves the funds are from legitimate sources and are truly unencumbered. If funds appear suddenly, you'll need to explain their origin, potentially with gift letters or prior sale documents.","url":"https://dealroom.so/glossary/fund-tracing","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":"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":"disguised-debt","term":"Disguised debt","url":"https://dealroom.so/glossary/disguised-debt"}],"related_questions":[{"question":"Can an investor fund my SBA 7(a) down payment?","url":"https://dealroom.so/sba-7a/questions/can-an-investor-fund-my-sba-7-a-down-payment"},{"question":"How does life insurance effectively fund a business buy-sell agreement?","url":"https://dealroom.so/sba-7a/questions/how-does-life-insurance-effectively-fund-a-business-buy-sell-agreement"},{"question":"Can life insurance specifically fund a deceased partner's buyout by surviving owners?","url":"https://dealroom.so/sba-7a/questions/can-life-insurance-specifically-fund-a-deceased-partner-s-buyout-by-surviving-owners"},{"question":"Can an SBA 7(a) loan fund initial inventory for a new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-fund-initial-inventory-for-a-new-business"},{"question":"Does the SBA 7(a) loan program fund businesses that are just starting out?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-loan-program-fund-businesses-that-are-just-starting-out"},{"question":"Can a 7(a) loan fund real estate as part of a business purchase?","url":"https://dealroom.so/sba-7a/questions/can-a-7-a-loan-fund-real-estate-as-part-of-a-business-purchase"}]},"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 — Fund Tracing","url":"https://dealroom.so/glossary/fund-tracing","source_type":"DealRoom Data"}}