{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-should-a-lender-verify-cash-equity-from-the-borrower-s-personal-savings-account-for-a-","api_url":"https://dealroom.so/api/public/questions/how-should-a-lender-verify-cash-equity-from-the-borrower-s-personal-savings-account-for-a-","question":"How should a lender verify cash equity from the borrower's personal savings account for a 7(a) loan?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Lenders must verify the source and seasoning of funds by reviewing at least three months of bank statements to ensure the funds are truly available and unencumbered.","rule":"To verify cash equity, lenders should obtain recent bank statements (typically 90 days or more) to confirm the funds exist, are in the borrower's control, and have not been recently deposited from an undisclosed or questionable source. Any large or recent deposits must be sourced to ensure they are not disguised loans or funds that would compromise the equity position.","example":"A borrower shows $100,000 in a personal savings account. The lender requests three months of bank statements. If a $90,000 deposit appeared last month, the lender must request documentation for that deposit to verify its legitimate source, such as a prior asset sale or employment income.","what_lenders_check":"Lenders must ensure the equity is truly 'cash at risk' and not borrowed or subject to repayment obligations. Undocumented or unseasoned funds pose a significant risk to the loan's eligibility and guaranty.","required_facts":["Cash equity","Personal savings","Bank statements","Source of funds","Seasoning"],"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":"What documentation verifies funds for equity injection transferred from a personal investment account?","url":"https://dealroom.so/for-lenders/questions/what-documentation-verifies-funds-for-equity-injection-transferred-from-a-personal-investm"},{"question":"How does a lender verify equity injection funds that are a cash gift from a non-family third party?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-a-cash-gift-from-a-non-family-thi"},{"question":"Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-investment-in-a-certificate-of-deposit-cd-count-towards-the-required-equi"},{"question":"What specific documentation is required to verify equity injection funds originating from a borrower's existing business assets, such as equipment or inventory?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-equity-injection-funds-originating-from-"},{"question":"How does a lender verify the source of gifted equity injection funds when the donor is a foreign national?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-of-gifted-equity-injection-funds-when-the-donor-is-a-f"},{"question":"How does a lender verify equity injection funds that are sourced from a personal line of credit secured by non-personal real estate?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-sourced-from-a-personal-line-of-c"}],"related_terms":[{"term":"Lender's Transcript of Account","url":"https://dealroom.so/glossary/lender-s-transcript-of-account"},{"term":"Borrower Equity","url":"https://dealroom.so/glossary/borrower-equity"},{"term":"Lender's Application for Guaranty","url":"https://dealroom.so/glossary/lender-s-application-for-guaranty"},{"term":"Indemnification from the Seller","url":"https://dealroom.so/glossary/indemnification-from-the-seller"},{"term":"Cash equity","url":"https://dealroom.so/glossary/cash-equity"},{"term":"Cash Advance","url":"https://dealroom.so/glossary/cash-advance"}],"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-should-a-lender-verify-cash-equity-from-the-borrower-s-personal-savings-account-for-a-","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."]}