Glossary · Your money in the deal
Source of funds
In short
Where your cash for the equity injection (down payment) is coming from. The SBA requires clear documentation for all funds used.
What it means in a deal
For your 7(a) equity injection, you must clearly document the source of your funds. This means providing bank statements, brokerage statements, or gift letters, showing the funds are unencumbered and not round-tripped. Lenders need to confirm the funds are genuinely yours and not borrowed or from the seller.
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 Source of funds
- 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 specific documentation is required to verify the source of my equity injection funds?
- How does a lender verify the source of a borrower's equity injection funds?
- How does the SBA verify the source and availability of my equity injection funds?
- How does the SBA 7(a) loan process verify the source of gifted 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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