{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-the-cash-equity-injection-from-a-borrower-s-forei","api_url":"https://dealroom.so/api/public/questions/what-documentation-is-required-to-verify-the-cash-equity-injection-from-a-borrower-s-forei","question":"What documentation is required to verify the cash equity injection from a borrower's foreign bank account?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Verifying cash equity from a foreign bank account requires equivalent documentation to domestic accounts, including statements, transaction histories, and potentially anti-money laundering (AML) checks.","rule":"When a borrower's cash equity originates from a foreign bank account, the lender must obtain bank statements and transaction history covering at least the most recent 90 days (or 6 months for large sums) to trace the funds and verify their source. Lenders must ensure compliance with all applicable Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations, performing enhanced due diligence if required.","example":"A borrower shows a $200,000 cash injection from an account in their name at a reputable bank in Canada. The lender requests 6 months of statements from the Canadian bank, along with a certified translation if needed, to confirm the funds' presence and source.","what_lenders_check":"Lenders face increased scrutiny with foreign funds due to AML/BSA concerns. They must verify the legitimacy of the foreign institution, trace the source of funds, and be vigilant against any red flags that could indicate illicit activities or non-compliance.","required_facts":["Foreign bank statements","Transaction history","90-day/6-month trace","AML/BSA compliance","Source verification"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","Policy Notice 5000-876441 - Citizenship and Residency Requirements"],"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"},{"title":"Policy Notice 5000-876441 - Citizenship and Residency Requirements","url":"https://www.sba.gov/sites/default/files/2026-02/Policy%20Notice%205000-876441%20-%20Update%20to%20Citizenship%20and%20Residency%20Requirements%20and%20Recission%20of%20PN%2050000-872050.pdf"}],"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":"Foreign-Sourced Equity Injection","url":"https://dealroom.so/glossary/foreign-sourced-equity-injection"},{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Cash injection","url":"https://dealroom.so/glossary/cash-injection"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Borrower Equity","url":"https://dealroom.so/glossary/borrower-equity"},{"term":"Indemnification from the Seller","url":"https://dealroom.so/glossary/indemnification-from-the-seller"}],"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-the-cash-equity-injection-from-a-borrower-s-forei","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."]}