{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-i-sell-personal-stock-investments-for-my-down-payment-what-proof-of-source-will-the-len","api_url":"https://dealroom.so/api/public/questions/if-i-sell-personal-stock-investments-for-my-down-payment-what-proof-of-source-will-the-len","question":"If I sell personal stock investments for my down payment, what proof of source will the lender require?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Lenders will require recent brokerage statements showing ownership of the stocks, documentation of the sale transaction, and bank statements showing the proceeds deposited into your account.","rule":"To verify that equity injection funds are from an eligible, unencumbered source, lenders must trace the funds. For stock sales, this means demonstrating ownership of the securities prior to sale, confirming the sale transaction, and tracking the funds into the borrower's bank account for use in the acquisition.","example":"A buyer provides brokerage statements from the past six months, a trade confirmation for a $60,000 stock sale, and personal bank statements showing the $60,000 deposit used for the down payment.","what_lenders_check":"Lenders confirm that the stocks were genuinely owned by the borrower, the sale was legitimate, and the proceeds were directly used for the equity injection. They look for any indication of borrowed funds or gifts that are not properly disclosed.","required_facts":["Brokerage statements","Stock sale confirmation","Bank deposit proof","Ownership verification","Traceability"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","SBA Form 1919 - Borrower Information Form"],"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"}],"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":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Proof of funds","url":"https://dealroom.so/glossary/proof-of-funds"},{"term":"Demand for Payment","url":"https://dealroom.so/glossary/demand-for-payment"},{"term":"Will/trust","url":"https://dealroom.so/glossary/will-trust"},{"term":"Source of Repayment","url":"https://dealroom.so/glossary/source-of-repayment"},{"term":"Source of funds","url":"https://dealroom.so/glossary/source-of-funds"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/if-i-sell-personal-stock-investments-for-my-down-payment-what-proof-of-source-will-the-len","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."]}