Glossary · Your money in the deal
Eligible Source
In short
This refers to the acceptable origins of your equity injection for an SBA loan. The SBA has specific rules about where your down payment can come from to ensure it's truly your money.
What it means in a deal
Your equity injection must come from personal funds that are 'seasoned' (in your account for at least 90 days) or from other verifiable, unencumbered sources like a gift from an immediate family member. Funds that are 'round-tripped' or borrowed against the business's assets are not eligible. Be prepared to provide bank and brokerage statements to prove the source and seasoning of your cash.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Eligible Source
- How does the SBA verify the source of my equity injection funds?
- What documentation is required to prove the source of my equity injection funds?
- What documentation is needed to verify the source of my cash equity injection?
- What documentation is required to verify the source of my cash equity injection?
- What exactly constitutes "unencumbered liquid assets" as a source for the required equity injection?
- What specific documentation is required to verify the source of my equity injection funds?
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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