For SBA lenders
Short answer
Lenders must obtain borrower's personal bank statements (typically for 3-6 months) showing consistent account balances and the accumulation of funds, along with verification that the funds are unencumbered and readily available.
The SBA requires lenders to verify that the equity injection is derived from eligible, unencumbered sources. For personal savings, this means demonstrating that the funds have been genuinely accumulated over time and are not recent deposits from undisclosed or ineligible sources, such as un-subordinated loans.
A borrower indicates $50,000 from personal savings. The lender requests 6 months of bank statements for the savings account, confirming the balance has been consistently at or above $50,000 and there are no large, recent, unexplained deposits that might indicate ineligible borrowed funds.
Insider move
Lenders must meticulously trace the origin of equity funds to prevent issues related to ineligible sources, such as undisclosed loans or gifts with repayment terms, which could jeopardize the loan's eligibility and the SBA 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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