{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-from-a-newly-inherited-sum-of-mo","api_url":"https://dealroom.so/api/public/questions/what-documentation-is-required-to-verify-equity-injection-from-a-newly-inherited-sum-of-mo","question":"What documentation is required to verify equity injection from a newly inherited sum of money?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Lenders must obtain a copy of the probate court documents or trust distribution statement, a death certificate, and bank statements showing the deposit of the inherited funds into the borrower's personal account.","rule":"To verify inherited funds as equity injection, the lender must establish clear ownership and source. This includes official documentation from the estate or trust proving the inheritance and bank records tracing the funds from the estate account to the borrower's account, then to the business. This ensures the funds are genuinely the borrower's and not borrowed.","example":"A borrower intends to use a $75,000 inheritance for their equity injection. The lender requests a copy of the will or probate decree, the death certificate, and bank statements showing the transfer of the $75,000 from the estate's account to the borrower's personal checking account, followed by its deposit into the business's operating account.","what_lenders_check":"Lenders must ensure that inherited funds are fully distributed and under the borrower's control, not subject to future claims or restrictions. Tracing the funds from the inheritance source to the borrower's injection is critical to verify genuine equity.","required_facts":["Inheritance documentation","Probate court documents","Bank statements","Funds traceability"],"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":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-equity-injection"},{"term":"Equity injection verification","url":"https://dealroom.so/glossary/equity-injection-verification"},{"term":"Inherited funds","url":"https://dealroom.so/glossary/inherited-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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-from-a-newly-inherited-sum-of-mo","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."]}