SBA 7(a) Q&A
Short answer
Lenders require clear documentation showing the source and availability of your equity injection funds, such as bank statements, investment account statements, or gift letters.
The SBA requires that the source of equity injection be verified and seasoned for a specific period to ensure the funds are genuinely from the borrower and not new debt with unknown terms. This prevents hidden liabilities and ensures the borrower's commitment.
If a buyer states they have $100,000 for equity, the lender will ask for personal bank statements covering the past 3-6 months to confirm the funds' existence and source.
Insider move
Lenders scrutinize the source of funds to confirm they are not undisclosed loans, unseasoned assets, or from ineligible sources, which could jeopardize the SBA guaranty. They also check for consistency with the borrower's personal financial statement.
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 2026-06-14. 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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