SBA 7(a) Q&A
Short answer
To prove cash injection, lenders typically require bank statements showing the funds in your account, wire transfer confirmations to the business, and potentially cancelled checks or escrow statements.
The SBA requires clear evidence that the equity injection funds have been irrevocably injected into the business. Lenders must verify the source and sufficiency of these funds through documented financial transactions, ensuring they are not borrowed funds that would require repayment.
A buyer needs a $75,000 cash injection. They provide bank statements showing $75,000 in their personal savings account, followed by a wire transfer receipt showing the movement of these funds to the business's operating account or an escrow agent for the transaction.
Insider move
Lenders meticulously review these documents to trace the origin of funds, ensuring they are truly the borrower's unencumbered cash and that they have been properly deposited into the business or escrow for the acquisition.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. 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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