For SBA lenders
Short answer
The SBA requires lenders to verify the source and seasoning of funds from any non-owner investor, ensuring these funds are unconditionally injected into the business and are not repayable.
SOP 50 10 requires verification of all equity injection funds, regardless of whether the contributor is an owner or guarantor. For non-owner investors, documentation must prove the funds are a true, unencumbered equity contribution to the business, often through a subscription agreement, bank statements, and a statement from the investor confirming no repayment obligation.
A new business receives a $75,000 equity injection from a non-owner investor. The lender obtains the investor's bank statements showing the funds were seasoned, along with a signed statement that the funds are an unrestricted capital contribution to the business.
Insider move
Lenders must ensure that non-owner investor funds meet the same equity injection requirements as owner funds, particularly regarding seasoning and being unencumbered. Improperly verified investor funds can jeopardize the guaranty.
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.
More on equity injection verification
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day