For SBA lenders
Short answer
The lender must trace the source of these funds to ensure they were not borrowed, are unencumbered, and genuinely belong to the borrower, especially if they are not from existing personal assets like a checking account or investments.
While a 90-day seasoning rule for equity injection is often cited, the key is to ensure the funds are not borrowed and are unencumbered. If funds appear in an account less than 90 days before application, the lender must obtain documentation (e.g., prior bank statements, gift letters, sale agreements) to verify the ultimate source and ensure they are eligible for injection.
A borrower shows $50,000 deposited into their savings account two weeks ago, intended for equity. The lender asks for statements from the prior account from which funds originated, or a signed gift letter from the donor and their bank statements, to confirm the funds are not from a short-term, undisclosed loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
7(a) Fees Effective During Fiscal Year 2026
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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