Glossary · Your money in the deal
In short
Round-tripping of funds occurs when the seller or a related party secretly provides money to the buyer, which is then presented as the buyer's equity injection.
The SBA strictly prohibits round-tripping because it disguises the true source of funds and circumvents equity injection requirements. Lenders will thoroughly vet the origin of your down payment to ensure it is genuinely from your own seasoned funds and not directly or indirectly from the seller. This is a deal-breaker if discovered.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
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