{"ok":true,"canonical_url":"https://dealroom.so/glossary/round-tripped","api_url":"https://dealroom.so/api/public/glossary/round-tripped","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":"round-tripped","term":"Round-tripped","group":"Your money in the deal","definition":"A prohibited transaction where funds are temporarily moved out of a business and then back in, often to make it appear as if the borrower has more equity or operating capital than they truly possess.","what_it_means":"The SBA strictly prohibits 'round-tripped' funds for equity injection. This typically involves a seller or related party lending money to the buyer, who then uses it as their equity, only for the seller to be repaid after closing. The SBA wants genuine, at-risk equity, not a deceptive cash transfer.","url":"https://dealroom.so/glossary/round-tripped","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":"disguised-debt","term":"Disguised debt","url":"https://dealroom.so/glossary/disguised-debt"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"}],"related_questions":[{"question":"Can an SBA 7(a) loan finance the acquisition of a business that is seasonal but also has year-round expenses?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-loan-finance-the-acquisition-of-a-business-that-is-seasonal-but-also-has-ye"},{"question":"Can I use an SBA 7(a) loan to acquire a business that is seasonal but also has year-round expenses?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-acquire-a-business-that-is-seasonal-but-also-has-year-round-e"}]},"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 — Round-tripped","url":"https://dealroom.so/glossary/round-tripped","source_type":"DealRoom Data"}}