SBA 7(a) Q&A
Short answer
Lenders verify the source of your cash equity injection by reviewing personal bank statements, investment account statements, and other financial records. They look for seasoning of funds, typically 90 days, to ensure the funds are truly yours and unencumbered.
The lender must confirm that the equity injection funds are from an eligible source and are truly the borrower's unencumbered assets. This often involves reviewing at least three months of bank statements to show the funds' origin and that they haven't been recently borrowed or transferred in a suspicious manner.
If you plan to use $100,000 from your personal savings for an equity injection, the lender will request your bank statements for the past 3-6 months to confirm the funds have been in your account and not recently transferred from an undisclosed source.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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