For SBA lenders
Short answer
Lenders must verify the source and seasoning of funds by reviewing at least three months of bank statements to ensure the funds are truly available and unencumbered.
To verify cash equity, lenders should obtain recent bank statements (typically 90 days or more) to confirm the funds exist, are in the borrower's control, and have not been recently deposited from an undisclosed or questionable source. Any large or recent deposits must be sourced to ensure they are not disguised loans or funds that would compromise the equity position.
A borrower shows $100,000 in a personal savings account. The lender requests three months of bank statements. If a $90,000 deposit appeared last month, the lender must request documentation for that deposit to verify its legitimate source, such as a prior asset sale or employment income.
Insider move
Lenders must ensure the equity is truly 'cash at risk' and not borrowed or subject to repayment obligations. Undocumented or unseasoned funds pose a significant risk to the loan's eligibility and 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.
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