SBA 7(a) Q&A
Short answer
The SBA requires lenders to verify the source of all equity injection funds, including personal savings, through bank statements, tax returns, and other financial documents to ensure they are truly from the borrower and are 'unencumbered'.
Lenders are responsible for documenting the source of the equity injection. For personal savings, this typically involves reviewing several months (usually 3-6) of bank statements to show the funds' accumulation and that they have been consistently held. Any large, recent deposits will require further explanation and documentation to ensure they are not borrowed funds that would violate SBA 'at risk' requirements.
If you are injecting $100,000 from personal savings, the lender will ask for bank statements showing the funds in your account for the past 3-6 months. If a $70,000 deposit appeared last month, you'd need to provide proof of its origin, such as a sale of stock or a personal asset.
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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