Glossary · Reading the business
In short
The process lenders use to verify the source and legitimacy of your equity injection. They need to confirm your funds are truly "seasoned" and not disguised debt.
Lenders will ask for bank statements and other documentation to trace your down payment funds back at least 90 days. This proves the funds are from legitimate sources and are truly unencumbered. If funds appear suddenly, you'll need to explain their origin, potentially with gift letters or prior sale documents.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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