SBA 7(a) Q&A
Short answer
Yes, funds from your personal savings account are generally an acceptable source for your equity injection, provided they are unencumbered and properly documented.
Personal savings are considered borrower equity as they represent unencumbered funds directly from the applicant. Lenders will require bank statements to verify the availability and seasoning of these funds, ensuring they are not recent loans or gifts from ineligible sources.
If you are buying a $500,000 business and need a $50,000 equity injection, showing bank statements confirming you have $50,000 or more in a personal savings account for a period (e.g., 60-90 days) will likely satisfy the requirement.
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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