Glossary · Doing the deal
Correspondent Bank
In short
This is a bank that facilitates transactions or services on behalf of another bank, often across international borders. It's how your foreign funds might be routed into the U.S.
What it means in a deal
When wiring your equity injection from a foreign bank, a correspondent bank often acts as an intermediary. Be aware that this can add an extra layer of processing time and potential fees to your transaction. Ensure you understand the routing details and any associated costs when planning your closing timeline.
Related terms
Common questions about Correspondent Bank
- Does the SBA 7(a) loan program require me to use a specific bank or can I choose any bank?
- Can prior bankruptcies or foreclosures impact my SBA 7(a) loan eligibility?
- Can cash in the business bank account count as collateral?
- What does 'Preferred Lender Program' (PLP) status mean for a bank?
- Does the SBA approve my loan application, or does the bank?
- If my business defaults, does the SBA pay the bank directly?
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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