Glossary · Your money in the deal
Certificate of Deposit
In short
A CD is a savings certificate with a fixed maturity date and interest rate. It's a low-risk way to hold cash, but for an SBA loan, funds in a CD might need to be "seasoned" or liquidated to be considered part of your equity injection.
What it means in a deal
If your equity injection funds are held in a CD, ensure you can access them by the Closing date without penalty. Lenders will verify the source and seasoning of these funds. A CD is a good option for holding funds you intend to use for your equity injection, provided it meets the Seasoned funds criteria.
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 Certificate of Deposit
- Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?
- Can I use funds from a Certificate of Deposit (CD) that matures after closing for my equity injection?
- Can I use an SBA 7(a) loan to finance a security deposit for a leased property as part of the acquisition?
- If the business property is leased, can the SBA loan finance a security deposit for the lease?
- Can a substantial pre-paid rent deposit on a commercial lease count towards the equity injection for a business acquisition?
- If the business property is leased, can an SBA 7(a) loan finance security deposits for the lease?
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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