For SBA lenders
Short answer
Lenders require the HUD-1 settlement statement (or equivalent), the recorded deed, bank statements showing the deposit of net sale proceeds, and proof of any prior lien satisfaction.
To verify equity injection from the sale of personal real estate, the lender must confirm the legitimate sale of the property. This involves reviewing the closing documents (HUD-1 or similar), the recorded deed confirming the transfer of ownership, and bank statements showing the net proceeds from the sale deposited into the borrower's account, then subsequently transferred as equity. Any prior mortgage satisfaction must also be evident.
A borrower uses $150,000 from the sale of their vacation home for an equity injection. The lender requests the HUD-1 from the sale, the recorded deed, and bank statements showing the $150,000 net proceeds deposited and subsequently transferred to the business's account.
Insider move
Lenders must ensure the real estate sale was an arm's-length transaction and that the funds are truly unencumbered equity, not a disguised loan or subject to future claims. Thorough documentation of the sale and fund tracing is crucial for SBA guaranty integrity.
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