For SBA lenders
Short answer
A lender verifies funds from a newly established business bank account by tracing the funds' origin from the borrower's personal accounts or other eligible sources and confirming the funds are unencumbered.
The SBA requires verification of the source and sufficiency of the equity injection. For funds in a new business account, the lender must look back to the original source (e.g., personal savings, sale of assets, gift) to ensure they are properly sourced, unencumbered, and genuinely represent the borrower's contribution.
A borrower shows $100,000 in a new business checking account for equity injection. The lender requests bank statements from the borrower's personal savings account showing a transfer of $100,000 to the business account, along with prior statements confirming the funds were seasoned and unencumbered.
Insider move
Lenders must prevent ineligible equity injections (e.g., borrowed funds without proper subordination) by rigorously tracing funds in new business accounts back to their legitimate, unencumbered source.
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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