For SBA lenders
Short answer
Lenders must obtain a copy of the probate court documents or trust distribution statement, a death certificate, and bank statements showing the deposit of the inherited funds into the borrower's personal account.
To verify inherited funds as equity injection, the lender must establish clear ownership and source. This includes official documentation from the estate or trust proving the inheritance and bank records tracing the funds from the estate account to the borrower's account, then to the business. This ensures the funds are genuinely the borrower's and not borrowed.
A borrower intends to use a $75,000 inheritance for their equity injection. The lender requests a copy of the will or probate decree, the death certificate, and bank statements showing the transfer of the $75,000 from the estate's account to the borrower's personal checking account, followed by its deposit into the business's operating account.
Insider move
Lenders must ensure that inherited funds are fully distributed and under the borrower's control, not subject to future claims or restrictions. Tracing the funds from the inheritance source to the borrower's injection is critical to verify genuine equity.
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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