{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-certificate-of-deposit-cd-that-matures-after-closing-for-my-equity-","api_url":"https://dealroom.so/api/public/questions/can-i-use-funds-from-a-certificate-of-deposit-cd-that-matures-after-closing-for-my-equity-","question":"Can I use funds from a Certificate of Deposit (CD) that matures after closing for my equity injection?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"No, funds from a Certificate of Deposit (CD) that matures after the loan closing generally cannot be used for your equity injection.","rule":"Equity injection funds must be liquid and immediately available at the time of closing. A CD that matures after closing means the funds are not accessible when needed. The lender requires proof that the funds are in a readily available form (e.g., checking or savings account) at or prior to closing to ensure the borrower's commitment.","example":"A buyer has $50,000 in a CD maturing two weeks *after* their scheduled closing date. This $50,000 cannot be counted towards their equity injection, as it would not be available on time. The buyer would need to liquidate the CD early (potentially incurring penalties) or find alternative funds.","what_lenders_check":"Lenders require verified, liquid funds for equity injection to ensure the borrower's capital contribution is real and available. Funds tied up in non-liquid assets like a CD that has not matured pose a timing risk and would not satisfy the immediate availability requirement.","required_facts":["CD maturity date","Liquidity requirement","Availability at closing","Verifiable funds"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","SBA Form 1919 - Borrower Information Form","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"SBA Form 1919 - Borrower Information Form","url":"https://www.sba.gov/sites/default/files/2025-03/2025.02.27%20Form%201919%20-%20Updates%20%28FINAL%29_03-12-2025%20%281%29.pdf"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/can-i-use-retirement-funds-from-a-401-k-as-equity-injection-for-a-750-000-business-purchas"},{"question":"Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-as-my-equity-injection-for-a-bus"},{"question":"Is it possible to use a second mortgage on my personal residence as an equity injection for a $1.5 million business acquisition?","url":"https://dealroom.so/sba-7a/questions/is-it-possible-to-use-a-second-mortgage-on-my-personal-residence-as-an-equity-injection-fo"},{"question":"How much cash must I personally inject for an SBA 7(a) business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition"},{"question":"What are the acceptable sources for my cash equity injection beyond personal savings?","url":"https://dealroom.so/sba-7a/questions/what-are-the-acceptable-sources-for-my-cash-equity-injection-beyond-personal-savings"},{"question":"What is the SBA's minimum required equity injection percentage for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-s-minimum-required-equity-injection-percentage-for-a-business-acquisition"}],"related_terms":[{"term":"Certificate of Deposit","url":"https://dealroom.so/glossary/certificate-of-deposit"},{"term":"Use of funds","url":"https://dealroom.so/glossary/use-of-funds"},{"term":"Eligible Use of Funds","url":"https://dealroom.so/glossary/eligible-use-of-funds"},{"term":"Certificate of Title","url":"https://dealroom.so/glossary/certificate-of-title"},{"term":"Certificate of Naturalization","url":"https://dealroom.so/glossary/certificate-of-naturalization"},{"term":"Certificate of Incumbency","url":"https://dealroom.so/glossary/certificate-of-incumbency"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-certificate-of-deposit-cd-that-matures-after-closing-for-my-equity-","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}