For SBA lenders
Short answer
Lenders verify liquidity by obtaining recent statements from the investment account, confirming the assets are liquid (e.g., publicly traded stocks), and requiring proof of liquidation and transfer of funds to the business account.
Equity injection funds must be liquid and readily available for the business. For investments, lenders must ensure the assets can be quickly converted to cash without significant penalty or market impact. Proof of ownership, valuation, recent statements, and confirmation of the actual sale and transfer of funds to the business's operating account are required.
A borrower plans to use $75,000 from their diversified stock portfolio for an equity injection. The lender requests the most recent brokerage statements, confirming sufficient liquid assets. Prior to closing, the lender requires documentation of the stock sale and the $75,000 transfer to the borrower's business account.
Insider move
Lenders must ensure that the investment assets are truly liquid and not subject to significant market risk or restrictions. Verifying the actual conversion to cash and direct transfer to the business is crucial to avoid issues with the equity injection.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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