{"ok":true,"canonical_url":"https://dealroom.so/glossary/seasoning-of-funds","api_url":"https://dealroom.so/api/public/glossary/seasoning-of-funds","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"seasoning-of-funds","term":"Seasoning of Funds","aka":"Seasoned funds","group":"Your money in the deal","definition":"This refers to how long your capital contribution has been held in your bank or investment accounts. Lenders require funds to be 'seasoned' to ensure they aren't borrowed money disguised as equity.","what_it_means":"Generally, your equity injection needs to be in your accounts for at least 90 days. If funds appear suddenly, you'll need to provide documentation (like a gift letter or sale of an asset) to explain the source and prove it wasn't a short-term loan that would increase your leverage.","url":"https://dealroom.so/glossary/seasoning-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"},{"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":"capital-contribution","term":"Capital Contribution","url":"https://dealroom.so/glossary/capital-contribution"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"proof-of-funds","term":"Proof of funds","url":"https://dealroom.so/glossary/proof-of-funds"},{"slug":"gift-letter","term":"Gift letter","url":"https://dealroom.so/glossary/gift-letter"}],"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 — Seasoning of Funds","url":"https://dealroom.so/glossary/seasoning-of-funds","source_type":"DealRoom Data"}}