SBA 7(a) Q&A
Short answer
No, funds from a Certificate of Deposit (CD) that matures after the loan closing generally cannot be used for your equity injection.
Equity injection funds must be liquid and immediately available at the time of closing. A CD that matures after closing means the funds are not accessible when needed. The lender requires proof that the funds are in a readily available form (e.g., checking or savings account) at or prior to closing to ensure the borrower's commitment.
A buyer has $50,000 in a CD maturing two weeks *after* their scheduled closing date. This $50,000 cannot be counted towards their equity injection, as it would not be available on time. The buyer would need to liquidate the CD early (potentially incurring penalties) or find alternative funds.
Lenders require verified, liquid funds for equity injection to ensure the borrower's capital contribution is real and available. Funds tied up in non-liquid assets like a CD that has not matured pose a timing risk and would not satisfy the immediate availability requirement.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
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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