SBA 7(a) Q&A
Short answer
Yes, funds held in a foreign bank account can be eligible for equity injection, but they must be transferred to a U.S. account and their source must be verifiable.
For equity injection funds originating from a foreign bank account, lenders will require proof of funds from the foreign institution, documentation of the transfer to a U.S.-based account, and a clear explanation of the source of these funds. This process ensures compliance with anti-money laundering (AML) regulations.
A buyer has $150,000 in a bank account in Germany. To use this for their equity injection, they must provide statements from the German bank showing the origin and ownership of the funds, then wire the funds to their U.S. business or personal account, providing the wire transfer records to the lender.
Insider move
Lenders perform enhanced due diligence on foreign-sourced funds to mitigate risks associated with money laundering and ensure the funds are genuinely unencumbered. They require thorough documentation to verify the legitimacy and transferability of the funds.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
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.
More on down payment & equity injection
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day