Glossary · People and paperwork
Bank Secrecy Act(BSA)
In short
The BSA is a federal law requiring financial institutions to assist U.S. government agencies in detecting and preventing money laundering. It mandates recordkeeping and reporting of certain transactions.
What it means in a deal
Your SBA lender is subject to the BSA and will require extensive documentation regarding your identity and the source of your funds to comply. Expect thorough scrutiny of your equity injection and personal financial statements as part of their due diligence.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Bank Secrecy Act
- Can my personal savings account act as collateral for an SBA 7(a) loan?
- What percentage of the loan does the SBA actually guarantee to the bank?
- What does the SBA's "guarantee" actually mean for the bank providing the loan?
- What specific actions constitute an 'unapproved material servicing action' that could lead to a 7(a) guaranty repair or denial?
- Does the SBA 7(a) loan program require me to use a specific bank or can I choose any bank?
- Can cash in the business bank account count as collateral?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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