{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-documentation-verifies-funds-for-equity-injection-transferred-from-a-personal-investm","api_url":"https://dealroom.so/api/public/questions/what-documentation-verifies-funds-for-equity-injection-transferred-from-a-personal-investm","question":"What documentation verifies funds for equity injection transferred from a personal investment account?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Lenders verify equity injection funds from investment accounts with statements showing asset liquidation, transfer of funds to the borrower's operating account, and a complete transaction history.","rule":"For equity injection from investment accounts (e.g., brokerage, mutual funds), the lender must obtain statements demonstrating the existence of the funds, evidence of the liquidation of assets (if applicable), and bank statements showing the transfer of the funds into the borrower's personal or business account. The paper trail must clearly show the source and movement of funds.","example":"A borrower liquidates $100,000 from their brokerage account. The lender would require the brokerage statement showing the sale, the bank statement showing the $100,000 deposited, and then the subsequent transfer of these funds into the business's operating account for the injection.","what_lenders_check":"Lenders prioritize verifying the clear source and unrestricted availability of equity injection funds. They scrutinize investment account statements and bank transfers to ensure the funds are genuinely from the borrower and are not borrowed or subject to liens.","required_facts":["Investment account statements","Asset liquidation proof","Bank transfer records","Source of funds","Unrestricted funds"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"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":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"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"},{"question":"What are the specific requirements for a lender to document and verify an equity injection from a retirement account structured as a ROBS (Rollover for Business Startups) transaction?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-document-and-verify-an-equity-injection"}],"related_terms":[{"term":"Equity injection verification","url":"https://dealroom.so/glossary/equity-injection-verification"},{"term":"Equity Investment","url":"https://dealroom.so/glossary/equity-investment"},{"term":"Personal Investment","url":"https://dealroom.so/glossary/personal-investment"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Retirement account funds","url":"https://dealroom.so/glossary/retirement-account-funds"},{"term":"Personal Funds","url":"https://dealroom.so/glossary/personal-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-verifies-funds-for-equity-injection-transferred-from-a-personal-investm","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."]}