For SBA lenders
Short answer
Lenders must obtain comprehensive documentation proving the sale, receipt of funds, and their availability for injection. This typically includes brokerage statements, transaction confirmations, and bank statements.
SBA requires lenders to verify the source and sufficiency of equity injection funds. For funds from the sale of personal assets like stocks, documentation must clearly show the asset was owned by the borrower, the sale proceeds were received, and these funds are unencumbered and available for the business. This ensures the injection is genuine and not borrowed on unfavorable terms.
A borrower is injecting $100,000 from a stock sale. The lender requests brokerage statements showing the sale of 1,000 shares of XYZ Corp for $100/share, a transaction confirmation, and the subsequent deposit into the borrower's bank account, followed by transfer to the business's account at closing.
Insider move
Lenders are concerned with the legitimacy and liquidity of the funds. They must ensure the stock was actually sold, the funds are clear, and there are no undisclosed liens or future claims against these funds that could jeopardize the equity injection.
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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