{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-if-my-equity-funds-are-held-in-a-foreign-bank-account-are-they-eligible-for-injection","api_url":"https://dealroom.so/api/public/questions/what-if-my-equity-funds-are-held-in-a-foreign-bank-account-are-they-eligible-for-injection","question":"What if my equity funds are held in a foreign bank account; are they eligible for injection?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, funds held in a foreign bank account can be eligible for equity injection, but they must be transferred to a U.S. account and their source must be verifiable.","rule":"For equity injection funds originating from a foreign bank account, lenders will require proof of funds from the foreign institution, documentation of the transfer to a U.S.-based account, and a clear explanation of the source of these funds. This process ensures compliance with anti-money laundering (AML) regulations.","example":"A buyer has $150,000 in a bank account in Germany. To use this for their equity injection, they must provide statements from the German bank showing the origin and ownership of the funds, then wire the funds to their U.S. business or personal account, providing the wire transfer records to the lender.","what_lenders_check":"Lenders perform enhanced due diligence on foreign-sourced funds to mitigate risks associated with money laundering and ensure the funds are genuinely unencumbered. They require thorough documentation to verify the legitimacy and transferability of the funds.","required_facts":["Foreign bank account","Equity injection","U.S. account transfer","Source verification","AML compliance"],"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":"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":"Retirement account funds","url":"https://dealroom.so/glossary/retirement-account-funds"},{"term":"Foreign-Sourced Equity Injection","url":"https://dealroom.so/glossary/foreign-sourced-equity-injection"},{"term":"Eligible Use of Funds","url":"https://dealroom.so/glossary/eligible-use-of-funds"},{"term":"Equity in real estate","url":"https://dealroom.so/glossary/equity-in-real-estate"},{"term":"Foreign national","url":"https://dealroom.so/glossary/foreign-national"},{"term":"Operating Account","url":"https://dealroom.so/glossary/operating-account"}],"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/sba-7a/questions/what-if-my-equity-funds-are-held-in-a-foreign-bank-account-are-they-eligible-for-injection","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."]}