{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-a-cash-equity-injection-from-a-buyer-s-p","api_url":"https://dealroom.so/api/public/questions/what-specific-documentation-is-required-to-verify-a-cash-equity-injection-from-a-buyer-s-p","question":"What specific documentation is required to verify a cash equity injection from a buyer's personal funds?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Lenders must obtain bank statements, wire transfer confirmations, or cancelled checks showing the funds were in the borrower's account for at least 60-90 days prior to injection, or trace their recent origin.","rule":"Per SOP 50 10, lenders must verify the source and sufficiency of the borrower's equity injection. For cash, this typically involves reviewing bank statements for the preceding 60-90 days to confirm the funds are seasoned and not recently borrowed, or tracing the funds if recently deposited to ensure they come from an acceptable source.","example":"A borrower proposes a $100,000 cash injection. The lender requests bank statements showing the $100,000 balance for the last three months, or if a recent deposit, documentation like a stock sale confirmation or a gift letter and donor bank statements.","what_lenders_check":"Lenders are concerned about unverified equity, borrowed equity (especially from non-acceptable sources), or equity that does not remain in the business. Proper documentation is critical to avoid a guaranty repair or denial.","required_facts":["Bank statements","Fund seasoning","Wire confirmation","Cancelled checks","Source tracing"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","SBA Form 1919 - Borrower Information Form"],"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":"SBA Form 1919 - Borrower Information Form","url":"https://www.sba.gov/sites/default/files/2025-03/2025.02.27%20Form%201919%20-%20Updates%20%28FINAL%29_03-12-2025%20%281%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":"Buyer Equity","url":"https://dealroom.so/glossary/buyer-equity"},{"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":"Cash equity","url":"https://dealroom.so/glossary/cash-equity"},{"term":"Minimum cash injection","url":"https://dealroom.so/glossary/minimum-cash-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-specific-documentation-is-required-to-verify-a-cash-equity-injection-from-a-buyer-s-p","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."]}