Glossary · The loan itself
Season
In short
To "season" funds means to hold them in a bank account for a period (typically 60-90 days) to prove they are truly yours and not newly acquired debt.
What it means in a deal
For your equity injection, the SBA often requires funds to be "seasoned" to demonstrate they are not borrowed or round-tripped. Provide bank statements showing the funds have been in your account for the required duration. Unseasoned funds may require additional documentation or be deemed ineligible.
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 Season
- What if my business is seasonal, and revenue fluctuates throughout the year?
- How does an SBA 7(a) loan typically handle seasonal businesses for repayment capacity?
- Can I use an SBA 7(a) loan to purchase a business that is seasonal?
- Can seasonal fluctuations in the acquired business affect the SBA 7(a) loan approval timeline?
- Can an SBA 7(a) loan be used for working capital specifically for seasonal business cycles?
- Can I use an SBA 7(a) loan to finance a business that is seasonal in nature?
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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