{"ok":true,"canonical_url":"https://dealroom.so/glossary/source-of-funds","api_url":"https://dealroom.so/api/public/glossary/source-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":"source-of-funds","term":"Source of funds","group":"Your money in the deal","definition":"Where your cash for the equity injection (down payment) is coming from. The SBA requires clear documentation for all funds used.","what_it_means":"For your 7(a) equity injection, you must clearly document the source of your funds. This means providing bank statements, brokerage statements, or gift letters, showing the funds are unencumbered and not round-tripped. Lenders need to confirm the funds are genuinely yours and not borrowed or from the seller.","url":"https://dealroom.so/glossary/source-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":"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":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"},{"slug":"round-tripped","term":"Round-tripped","url":"https://dealroom.so/glossary/round-tripped"}],"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 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"},{"question":"How does the SBA verify the source and availability of my equity injection funds?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-the-source-and-availability-of-my-equity-injection-funds"},{"question":"How does the SBA 7(a) loan process verify the source of gifted equity injection funds?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-7-a-loan-process-verify-the-source-of-gifted-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 — Source of funds","url":"https://dealroom.so/glossary/source-of-funds","source_type":"DealRoom Data"}}