For SBA lenders
Short answer
Lenders must verify the source of cash equity injection through bank statements, settlement statements, or other acceptable documentation showing funds were disbursed from the borrower and received by the business.
The SBA requires lenders to verify that the equity injection funds are from an eligible source and have been irrevocably injected into the business. This often involves reviewing bank statements to trace the funds from the borrower's personal account to the business's operating account or the closing escrow.
For a $100,000 cash injection, the lender requires the borrower's personal bank statements showing the withdrawal of $100,000 and the business's bank statements or settlement statement showing the $100,000 deposit or application towards the purchase.
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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