{"ok":true,"canonical_url":"https://dealroom.so/glossary/source-of-funds-verification","api_url":"https://dealroom.so/api/public/glossary/source-of-funds-verification","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-verification","term":"Source-of-Funds Verification","group":"People and paperwork","definition":"The process of proving where your down payment and working capital funds originated. The SBA requires this to ensure your equity injection is legitimate and unencumbered.","what_it_means":"Lenders will ask for bank statements, brokerage statements, and potentially gift letters or tax returns to verify your funds. They need to see a clear paper trail showing the money is truly yours and not borrowed or \"round-tripped.\" Be prepared to provide detailed documentation for all funds used in the acquisition.","url":"https://dealroom.so/glossary/source-of-funds-verification","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":"proof-of-funds","term":"Proof of funds","url":"https://dealroom.so/glossary/proof-of-funds"},{"slug":"seasoning-of-funds","term":"Seasoning of Funds","url":"https://dealroom.so/glossary/seasoning-of-funds"},{"slug":"unencumbered-cash","term":"Unencumbered Cash","url":"https://dealroom.so/glossary/unencumbered-cash"},{"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 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 Verification","url":"https://dealroom.so/glossary/source-of-funds-verification","source_type":"DealRoom Data"}}