SBA 7(a) Q&A
Short answer
Lenders typically require bank statements, brokerage statements, gift letters (if applicable), and possibly tax returns or other financial records to trace the source of equity injection funds.
SBA requires lenders to verify that the equity injection comes from an eligible source and is unencumbered. This involves obtaining documentation such as bank statements over several months, withdrawal slips, or gift letters if the funds are gifted. The lender must ensure the funds are not from another loan or from assets of the business being acquired.
For a $150,000 cash injection, you would provide 3-6 months of personal bank statements showing the funds, and if a portion was a gift, a signed gift letter and the donor's bank statement showing the transfer.
Insider move
Lenders prioritize a clear and consistent paper trail for the equity injection. They look for any signs of undisclosed borrowing, transfers from ineligible sources, or insufficient funds, which could jeopardize the SBA guaranty.
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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