SBA 7(a) Q&A
Short answer
Lenders, acting on behalf of the SBA, verify equity injection funds through bank statements, investment account statements, and other financial records to ensure they are from eligible sources.
The lender is responsible for conducting due diligence on the source of funds for the equity injection. This involves reviewing bank statements, brokerage statements, and gift letters (if applicable) to confirm the funds are genuinely available, unencumbered, and from an acceptable source.
A buyer submits bank statements showing a $120,000 balance for the required $100,000 down payment, along with an explanation for any recent large deposits.
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
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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