SBA loan basics
Short answer
You must provide clear documentation showing the source of your down payment funds, typically including bank statements, investment account statements, or a gift letter, to prove they are unencumbered and yours.
The SBA requires verification of the source of equity injection to ensure it represents true owner equity and not additional debt. Lenders must collect statements, transaction histories, and explanations for large deposits to confirm the funds' origin and that they are not sourced from another loan that would weaken the borrower's financial position.
If you plan to use $100,000 from your savings account for the down payment, you would provide 3-6 months of bank statements to show the funds have been seasoned and are readily available, along with an explanation for any recent large deposits.
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
SBA Form 1919 - Borrower Information Form
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.
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