{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-originating-from-a-foreign-bank-account","api_url":"https://dealroom.so/api/public/questions/how-does-a-lender-verify-equity-injection-funds-originating-from-a-foreign-bank-account","question":"How does a lender verify equity injection funds originating from a foreign bank account?","topic":"Equity Injection Verification","audience":"lender","bot_mode":"lender","short_answer":"Lenders must verify foreign-sourced equity injections with documentation demonstrating the funds were available to the borrower for at least 90 days or through acceptable transaction records to a U.S. account.","rule":"The SBA requires a 90-day seasoning period for equity injection funds to ensure they are truly from the borrower's own resources and not short-term debt. For foreign accounts, lenders must obtain statements or verifiable transaction records, ideally tracing funds through a U.S. correspondent bank or a U.S. branch of the foreign bank.","example":"A borrower provides a statement from their personal savings account in Canada, showing $100,000 for equity injection. The lender requests 90 days of statements, a swift transfer record to a U.S. account, and a source of funds explanation to ensure compliance.","what_lenders_check":"Lenders are concerned with Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, verifying the legitimacy and source of funds, identifying potential undisclosed third-party debt, and ensuring the funds are not subject to quick repatriation.","required_facts":["Foreign bank account","90-day seasoning","Fund traceability","AML/KYC compliance"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","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":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"How does a lender verify equity injection funds originating from a newly established business bank account?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-originating-from-a-newly-established-busin"},{"question":"Can a borrower's investment in leasehold improvements prior to loan closing count towards the equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-investment-in-leasehold-improvements-prior-to-loan-closing-count-towards-"},{"question":"What specific documentation is required to verify the source of gifted equity injection funds from a foreign family member?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-the-source-of-gifted-equity-injection-fu"},{"question":"If a borrower contributes equipment as equity, how does the lender verify its fair market value?","url":"https://dealroom.so/for-lenders/questions/if-a-borrower-contributes-equipment-as-equity-how-does-the-lender-verify-its-fair-market-v"},{"question":"What specific conditions must a personal loan from a non-owner family member meet to count as equity injection for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-must-a-personal-loan-from-a-non-owner-family-member-meet-to-count"},{"question":"How does a lender verify the source of gifted equity injection funds from a foreign national?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-of-gifted-equity-injection-funds-from-a-foreign-nation"}],"related_terms":[{"term":"Foreign-Sourced Equity Injection","url":"https://dealroom.so/glossary/foreign-sourced-equity-injection"},{"term":"Originating lender","url":"https://dealroom.so/glossary/originating-lender"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Retirement account funds","url":"https://dealroom.so/glossary/retirement-account-funds"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"}],"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/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-originating-from-a-foreign-bank-account","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."]}