{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-significance-of-the-90-day-rule-regarding-equity-injection-and-prior-payments","api_url":"https://dealroom.so/api/public/questions/what-is-the-significance-of-the-90-day-rule-regarding-equity-injection-and-prior-payments","question":"What is the significance of the \"90-day rule\" regarding equity injection and prior payments?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"The \"90-day rule\" generally states that funds injected by the borrower or seller within 90 days prior to the SBA loan application can be considered part of the equity injection, provided they are properly documented and verified.","rule":"This rule allows for certain pre-closing injections to count towards the required equity. However, these funds must be clearly identified, sourced, and verifiable. Funds injected before the 90-day window are generally not counted unless they are permanent working capital or fixed assets.","example":"A buyer pays a $50,000 deposit to the seller 60 days before applying for an SBA loan. This $50,000 can count towards the equity injection if documented with proof of payment and source of funds, as it falls within the 90-day window.","what_lenders_check":"Lenders must diligently verify the source of funds for any injections within the 90-day period. Ensuring these funds are not borrowed and are clearly documented as equity is critical to avoid issues with the SBA guaranty.","required_facts":["90-day window","Borrower injection","Seller injection","Documented funds","Source verification"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Fees Effective During Fiscal Year 2026"],"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) Fees Effective During Fiscal Year 2026","url":"https://www.sba.gov/sites/default/files/2025-08/Info%20Notice%20-%207%28a%29%20Fees%20FY%202026%20%28FINAL%208-28-25%29.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":"90-Day Rule","url":"https://dealroom.so/glossary/90-day-rule"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Totality of the circumstances rule","url":"https://dealroom.so/glossary/totality-of-the-circumstances-rule"},{"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"}],"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-is-the-significance-of-the-90-day-rule-regarding-equity-injection-and-prior-payments","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."]}