Glossary · People and paperwork
Money Laundering
In short
This is the illegal process of concealing the origins of illegally obtained money, typically by passing it through legitimate businesses. It's a serious financial crime.
What it means in a deal
Lenders have strict Anti-Money Laundering (AML) compliance requirements. If a business has any history or suspicion of involvement in money laundering, it will be ineligible for an SBA loan and could lead to severe legal repercussions for you as the buyer. Lenders will scrutinize the source of funds.
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 Money Laundering
- What counts as "my own money" for the down payment?
- How does the SBA decide how much money I can borrow?
- Who actually lends the money for an SBA 7(a) loan?
- Who actually provides the money for an SBA 7(a) loan?
- Who actually gives me the money for an SBA 7(a) loan?
- Does the government directly lend money for an SBA 7(a) loan?
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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